13 Feb 2014
Flash: GBP/USD rally neutralises outlook - Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that GBP/USD’s rally back above its previous downtrend has neutralised her negative outlook.
Key Quotes
“The 1.6575/78.6% retracement was seen as the last defence for 1.6667 recent peak. The market is bid intraday above 1.6438, however it is the 1.6259/29 support which remains key (September high and the 23.6% retracement of the move up from July 2013).”
“A close below the 1.6259/29 support is needed to signal another leg lower to the 1.5855 November low. From a longer term perspective we believe that the market has recently topped.”
“The market has recently failed at tough resistance - the 1.6745 May 2011 peak, the 200 month ma at 1.6635 and the inter-year pivot line at 1.6657. The convergence of resistance at this juncture together with the TD perfected set up on the weekly chart all suggests that the market should again fail here.”
Key Quotes
“The 1.6575/78.6% retracement was seen as the last defence for 1.6667 recent peak. The market is bid intraday above 1.6438, however it is the 1.6259/29 support which remains key (September high and the 23.6% retracement of the move up from July 2013).”
“A close below the 1.6259/29 support is needed to signal another leg lower to the 1.5855 November low. From a longer term perspective we believe that the market has recently topped.”
“The market has recently failed at tough resistance - the 1.6745 May 2011 peak, the 200 month ma at 1.6635 and the inter-year pivot line at 1.6657. The convergence of resistance at this juncture together with the TD perfected set up on the weekly chart all suggests that the market should again fail here.”