Video

#SaxoStrats
The Chicago Fed's national activity index tracks 85 aspects of the US economy and currently sits at a three-year high, lending a real degree of legitimacy to the current outperformance in stocks, says Saxo equities head Peter Garnry.
Article / 20 May 2016 at 8:40 GMT

Never mind the Brexit, here are the technicals

Technical Analyst / Saxo Bank
Denmark
  • GBPUSD penetrates lower rising trendline
  • Rising wedge pattern could still unfold
  • 1.4870-1.4980 target remains in play 

London Underground
As always, mind the gap. Photo: iStock 

By Kim Cramer Larsson

GBPUSD didn't wind up drawing the exact wedge pattern discussed here, but instead penetrated the lower rising trendline in the possible rising wedge to test the neckline of the inverted shoulder-head-shoulder pattern. 

While doing so, the chart's movement saw the RSI break below the rising trendline in its own rising wedge-like pattern. 

Cable, however, proceeded to bounce off the neckline and is currently testing the 76.4 retracement of the bearish May market. The RSI jumped back above the lower trendline and back above the 60 threshold, signifying bullish sentiment.

A rising wedge pattern could still unfold, although it would be a broader than anticipated. 

The potential price target at around 1.4870-1.4980 (calculated on the  inverted shoulder-head-shoulder pattern) is still in play. 

A break above yesterday's high at around 1.4664 will confirm the short-term bullish picture whereas a close below 1.4330 will most likely demolish the wedge pattern picture. 

GBPUSD daily

Create your own charts with SaxoTraderGO click here to learn more

Source: Saxo Bank

— Edited by Michael McKenna

Kim Cramer Larsson is a technical analyst at Saxo Bank
Relevant articles for you

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail