Main analysis

Update for: 2012-01-02 - 2012-01-08

Posted on: Monday, 02 January 2012 16:46


GBPUSD: 1.5511

 Short-Term Trend:  weak downtrend


The downmove has become quite choppy and the confidence in the presented wave count has diminished. Everything started off nicely last week as the pair moved exactly as we expected. We favored a short position in the 1.5620/30 area against 1.5780 level. The initial rally was capped at the 1.5680 Fibo level and GBP then declined sharply. However, in the last trading day of 2011 it rallied again and the downtrend weakened. Righ now, we still like the downside but only if the pair resumes its decline immediately. So, lowering the stop to 1.5600 makes sense now....

Strategy: Holding short from 1.5620/30 is favored against 1.5600. Target=1.5000.

Next Update: Sun, 01/08/2012.

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