16 Jan 2015
GBP/USD looking for correction to terminate circa 1.5300 – Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, explains that intraday Elliot wave counts suggest that the GBP/USD correction has terminated at 1.5300 levels, and further expects the support at 1.4910 levels to hold the downside for the pair.
Key Quotes
“GBP/USD remains corrective near term however the Elliot wave count on the intraday charts are suggesting that the correction terminated at 1.5300. We are unable to rule out a deeper phase to test the downtrend at 1.5490, but this is not our favoured scenario.”
“Last week the market failed to tackle psychological support at 1.5000 directly below 1.5000 we have the 1.4910/1.4813 long term Fibo and 2013 low but look for this to hold the downside on the initial test.”
“We have a 6 month resistance line at 1.5490 and while capped here, the market will remain directly offered. Key resistance is the 1.5855 November 2013 low.”
Key Quotes
“GBP/USD remains corrective near term however the Elliot wave count on the intraday charts are suggesting that the correction terminated at 1.5300. We are unable to rule out a deeper phase to test the downtrend at 1.5490, but this is not our favoured scenario.”
“Last week the market failed to tackle psychological support at 1.5000 directly below 1.5000 we have the 1.4910/1.4813 long term Fibo and 2013 low but look for this to hold the downside on the initial test.”
“We have a 6 month resistance line at 1.5490 and while capped here, the market will remain directly offered. Key resistance is the 1.5855 November 2013 low.”