GBP has broken trailing support last night after hitting major resistance around the November highs.
The past 2 days price was trading above the pivot highs when they broke back above them on Wednesday and continued higher into Friday, where the pivot high became a resistance zone. The selling was confirmed with the break of 2.1029
The rotation that I was looking for to happen on Monday occured on Friday, and the natural rotation for price is to rotate back into the 3-day lows @ 2.0806.
This rotation occurs all the time. However what is important about this time is where it's actually occuring. Around upper monthly highs often become major resistance zones for the rest of November until the new dynamics begin at the start of the next month:- December
The 3-day cycles need to be broken, however, it's the Weekly 50% level shown that defines the strength of any Weekly trend.
Below 2.0777 and the pound will follow similar paths as US and other global Indexes back down into major support.
But at this stage, this price action is a normal rotation back into the 3-day lows, and will probably consolidate above the 3-week 50% level at this stage.....
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