GBPUSD (click to maximize resolution)
The GBPUSD pair has experienced some significant uptrend moves over the past seven trading days. Yesterday certainly saw the greatest gain over that seven day period. However, signs of weakness in this move have been apparent on many time frames. If we look at the current price action, we can see a very natural stopping point for this up move. The red vertical line and the red horizontal line represent a perfect square in time and price. Gann said that when time and price are squared, changes do happen. This confluence area happened at the 1.4375 value area, which is also a natural harmonic resistance area. The GBPUSD made several attempts to find support at the inner arc near the 1.432 value area, but ultimately it crossed below and has not been experiencing much support. The Composite Index and the Relative Strenght Index also show a shared structure and both are coming off of extremes indicating overbought conditions. The first target area where we may see support is the 1.4262 level.
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