Currencies Mark Time at end of Strong Dollar Week

The GBPUSD has carved out a head and shoulders top from the October low. More importantly, an extremely rare diamond top appears to forming since the early summer months. A diamond top is really the combination of an expanding and contacting triangle. A better short entry may present itself in early 2010. Cable has reached former resistance (now support) at 16130 but trend structure is bearish below 16415. Former supports from 16165 to 16225 are now probable resistance levels. Levels to expect some support in the weeks(s) ahead are 16030, 15920, and 15835. The big trade will come in 2010 from break of the diamond top.