FOREX GBP/USD 6th February 2008

"Whenever the market breaks the 3-day lows, as it did on Friday, the expectation is that price would move to the extended low the next day before reversing back towards the break....whether it's going to come down again providing a 'HOOK' day?????

When we look at Wednesday's range, it might actually provide the breakout on the Upside tomorrow, than any higher moves today." (Yesterday's report)

Tuesday moved down into the Daily lows, and now Wednesday is going to set-up a reversal trade upwards, confirmed with the break of the 3-day highs...

Above the Tuesday lows and Weekly 50% level, I would like GBP to move up 90-120 pips from these lows. Personally I would like to see it just continue higher breaking the 3-day highs.

However, I know that price can move upwards, but move back down 90-120 pips before reversing off the Spiral low and then breaking higher on Wednesday, probably in the US timeframe in 10 hours time.

Note: Technical Analysis:- trading below monthly 50% levels and 3-day SELL cycle, there is nothing to suggest any UP move will take place, certain things need to happen for any Up swing to happen (Breakout)

Because an UP swing into the 5-day 50% level from Tuesday lows, and then the failure can most certainly continue down on Wednesday..... (Trading below Weekly 50% level)