GBPUSD update: Price breaks 20 day VTL and 20 day FLD

Price broke the downward sloping 20 day VTL and 20 day FLD, signalling a trough of at least 40 day magnitude has occured. Given the phasing of the last 80 day cycle we can assume the trough that has formed is the 80 day and by inference, the 20 week. Of course it may well be the 18 month, according to this post about phasing differences.

Here is the latest daily chart:

GBPUSD_£__daily_27_01_2015Projections from  the FLD cross means that price will also cross the 40 day FLD in a cascade reversal. I would expect price to test the downward sloping 80 day VTL (light blue line). Lets see what kind of move up this ‘A’ category interaction will form.

I have a long position and will hold, keeping in mind the potential bearish longer term nature of this pair. My Hurst T2 target for this trade is around 15400. Whether this is undershot or overshot might give clues as to the magnitude of the trough.

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