GBP/USD Weekly Outlook and Trading Idea

By Roger Baettig | October 09 2011 3:17 PM

Update for: 2011-10-10 - 2011-10-16

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Posted on: Sunday, 09 October 2011 17:17

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GBPUSD: 1.5557

Short-Term Trend: downtrend

Outlook: The market was volatile last week but the overal technical picture has not changed. Despite its earlier new low, GBP recovered later in the week. So, I still think that a correction of the recent decline (wave (a) ) is under way now. The minimum requirement for this pullback has already been achieved but I think that there is a good possibility for further recovery twd 1.5950 level. If such a rally develops, a short position can be favored. Otherwise, if the decline resumes directly from here, I do not see a compelling trading opportunity. Ultimately I expect weakness twd 1.5000 and 1.4560.

Strategy: If a rally twd 1.5950 develops, shorts can be favored

Next Update: Sun, 10/16/2011.

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