The Dec'09 British Pound produced a positive signal against a negative underlying trend. Positive action today should be viewed as "Corrective" up to the 16146 Inflection Pivot. This is the expected high point for any upside follow through to yesterday's signal if the underlying negative momentum is going to remain in force. A rise above 16146 is a positive transitional signal that projects the currency up to 16387 and 16661 on any sentiment shift.
A break under 15873 support pivot is needed to put the contract back in a soft spot targeting 15691 on any negative turn. If the MKT is going to stabilize it will do so above here. If not the sellers will be back with 15554 and 15510 targeted.
Corrective trading environments are dynamic. Watch the current positive structure [higher move lows, higher move highs]. If its holding don't be too anxious to step in front of the rise. A break in structure followed by a squeeze test of 16146 or a REVERSAL [false Breakout] at this level is the best opportunity today to re-establish a short position. 16055 resistance will also provide a REVERSAL opportunity.
Only above 16146 can we get on board with the current positive push.
JS
STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html
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