Main analysis

Update for: 2012-05-21 - 2012-05-27

Posted on: Sunday, 20 May 2012 15:26


GBPUSD: 1.5814

 Short-Term Trend:  downtrend


Well, I was looking for one more rally twd 1.6300 prior to a strong move lower. But GBP fell sharply last week and thus confirmed that the next leg lower is likely under way. That requires a modification of the structure of the wave (E) as shown above. The confidence in this wave count is not high, but the speed of the decline from the 1.6300 top is enough to confirm that wave (E) has likely ended. If correct, this pair is in the very beginning of a multi-month decline twd 1.3500!!
Only a move abv 1.6100/10 negates, risks one final rally twd 1.6300/1.6380...

Strategy: Shorts favored at 1.5900/20 against 1.6120.

Next Update: Sun, 05/27/2012.

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