GBP/USD beginning short-term reversal

I believe the GBP/USD is beginning a reversal in which it will go long for about 7 days or so, go short for another seven days or so, then go long for about a month. I have posted a graph below showing my forecast over the next month.

On October 6th, the GBP/USD took out two major levels of support from September 2010 and December 2010. It then went back up to a level of resistance at 1.5990, which I forecasted here. http://lattepips.com/2011/10/11/short-gbpusd-2/ It then began going short again to take out the new low it had made in October. However, it has not been strong enough to move lower; therefore, I believe it is beginning a reversal which will now target the 1.6300 level over the next month or so.

I want to reiterate that the GBP/USD is still in a longer-term (year long) downtrend; however, it has seemed to pause right now to begin moving further up again.

Positive 1,120 PIPs in two trades in 2 months – GBP/USD moving as forecasted back in October

Back on October 11th, I wrote that the GBP/USD would be moving down over the next 6 months or so. But before that move happened, I wrote that the GBP/USD would move up to 1.5990.

I hope you were able to take advantage of those two trade forecasts. One trade profited 370 PIPs in two weeks. The other trade is a longer-term trade currently positive 550 PIPs in seven weeks. That is 1,120 PIPs on two trades in nine weeks, averaging 124 PIPs/week without having to constantly make trades or even multiple trades every day.

I will keep you apprised of the current trade, when to exit and get into the next GBP/USD trade.