Bouncing Cable Cars

Good morning Dynamic Traders

The GBPUSD has been merrily downtrending since November 2007 and more recently since July this year.

The daily chart reveals that it has recently bounced off a noteworthy support level just above the figure 17000, which tallies with a predictable wave 5 fib extension.
But are we just experiencing a breather?

The 4 hour chart below shows that price is presently a little nervous. The support and resistance lines are nicely containing the miniature bounces, but at some point it will decide which way to go.

My analysis reveals that price is keen to head downwards towards a wave 5, but there may be a possibility of price testing the fib resistance at 17730 beforehand.

The UK and US news due out today is clearly contributing to the indecision, but once released, should also give rise to a meaningful move.

Remember to apply your ESLT rules diligently before taking your positions!

GBPUSD 4 hour chart Advanced Get

Enjoy the ride!

Saba Jackson