GBP/USD pressuring the Fibo resistance at 1.5481 – Commerzbank

FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, notes that GBP/USD is pressuring the fibo resistance at 1.5481, the retracement of the move from July 2014, expecting a break above 1.5490 to pave way for 1.5618.

Key Quotes

“GBP/USD has again held the 23.6% retracement of the move down from July 2014 this is located at 1.5481. The top of the daily cloud is also found here at 1.5490 and we have not been above here since July 2014.”

“The Elliott wave count on the daily chart is suggesting this was the end of the short term correction higher however the Elliott wave count on the intraday charts is more positive and a break back below the 20 day ma at 1.5296 is needed to alleviate upside pressure.”

“Above 1.5490, will target initially 1.5618, the end of December high.”

“Key resistance is the 1.5855 November 2013 low.”

“Below the 20 day ma should trigger a slide back to the 1.4953 recent low and the 1.4813 2013 low.”

“Shorter term (1-3 weeks): Negative bias below the 55 day ma”

“Medium term (1-3 months): Targets 1.4910/1.4813 long term Fibo and 2013 low. Below here targets 1.4290/30.”