GBP USD slight improvement
10/17/2016 11:43:21 AM
GBP/USD has recently seen a huge spike lower to reach the 1.1937 level. The currency pair momentarily dipped to 1.2090 on October 11. It needs to stay above this level for our predicted small recovery rally to succeed.
Since three inside days were made in the past few days a break below 1.2090 would almost surely mean a persistence of the descent with the 1.1937 low again targeted.
Likewise a break above the 1.2280 October 13 inside day high would point towards higher levels being seen with the 1.2500 mark being a possible target area. We also have a time zone gap back to 1.2640. It is possible that this will be somewhat filled, but is not our favored scenario.
We have a persistence line at 1.2947 and will contemplate that the market remains directly offered below the 1.3056 late September high. Below 1.1938 we would target the 1.0463 1985 low.