GBP tramlines have recovered in the charts

While no trading channel lasts forever, defunct ones can spring back to life. John C Burford explains what that means for the pound.

Today, I thought I would cover the GBP/USD because it is a good example of how to handle a situation where a previously good tramline fails and then recovers.

Remember that tramlines are parallel lines of support and resistance, and trading takes place in the channel between these lines.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.