GBP/USD Daily Chart" title="GBP/USD Daily Chart" width="712" height="552" src="https://d1-invdn-com.akamaized.net/content/picd4f4e421b99b83d23785ca3ab1ffd72c.gif">
GBP/USD: 1.6164
Short-Term Trend: uptrend
Outlook: As expected GBP broke below the lower trendline of the channel drawn on the chart. But, this breakdown was very brief and remained far above our desired long entry level at 1.5750. Then the British pound rose sharply on Thursday and Friday last week and thus confirmed that wave (b) was over. And the wave structure from the July 2013 low is now considered a Double Zig-Zag. If correct we will see gains twd 1.6386 or slightly above in the next few weeks followed by a trend reversal. Right now it is too late to trade from the long side in our opinion, so we would wait for signs that the rally from the July low has ended.
On the downside, below last week's low at 1.5894 will signal that the uptrend from the July low has ended.
Strategy: Stand aside.