GBP/USD INTRADAY CHART
BIAS: Slightly cautious - feel we are close to a temporary low
| Resistance: | 1.2424 | 1.2441 | 1.2460-65 | 1.2480 |
| Support: | 1.2383 | 1.2369 | 1.2340-45 | 1.2301-10 |
MAIN ANALYSIS: Yesterday's high was a disappointment - just a bit lower than I had been expecting. However, overall a reversal lower was the underlying expectation. I'm just a little puzzled because the 1.2383 low should have been an impulsive projection but it wasn't really particularly accurate. The 1.2424 high was also pretty deep for this correction. I am therefore somewhat mixed but suggest watching for bullish reversal indications. A break above 1.2425 would confirm the 1.2383 low and if so, then we should see a pullback higher. The only problem with this is the unknown depth of any correction higher. Thus, take care and observe for bearish reversal indications.
COUNTER ANALYSIS: If this continues lower there is a target at 1.2369 that should spark a pullback to 1.2385-00 but then see a 3-wave decline to an estimated 1.2310-1.2345 area. If this occurs watch for bullish reversal indications…