10 Jun 2013
GBPUSD retreating from 200 day ma
FXstreet.com (London) - GBP/USD performed a high last week at 1.5684 on a broad based sell off in the dollar, reaching the top of its uptrend and 200 day ma.
Gapped Down To Open in European Session Below Pivot
This morning, the pair is trading much lower, printing a gap of over 150 pips below Fridays high on the charts. According to Karen Jones, a senior analyst at Commerzbank, the highs were located at 1.5684/1.5704 and she expected these to hold the initial test. “We suspect that this is the end of the corrective move. We note the 13 count on the daily TD Combo and this adds weight to that view. A break below the 1.5425/1.5390 (38.2% retracement) is needed to alleviate topside pressure and signal a slide back to 1.5270 en route to 1.5155 (retracements of this recent leg higher) and base of the channel at 1.5035.” Teams at ICN suggested that the general trend over short-term basis is to the downside as far as areas of 1.5770 remains intact targeting 1.4355.
g>Levels
Without there being any top tier data today for the calendar, 1.5475 comes as next support while we see if the pair can drift higher through the gap, otherwise 1.5425 and 1.5400 could be last defences before the pair resumes the overall bear trend.
Gapped Down To Open in European Session Below Pivot
This morning, the pair is trading much lower, printing a gap of over 150 pips below Fridays high on the charts. According to Karen Jones, a senior analyst at Commerzbank, the highs were located at 1.5684/1.5704 and she expected these to hold the initial test. “We suspect that this is the end of the corrective move. We note the 13 count on the daily TD Combo and this adds weight to that view. A break below the 1.5425/1.5390 (38.2% retracement) is needed to alleviate topside pressure and signal a slide back to 1.5270 en route to 1.5155 (retracements of this recent leg higher) and base of the channel at 1.5035.” Teams at ICN suggested that the general trend over short-term basis is to the downside as far as areas of 1.5770 remains intact targeting 1.4355.
Without there being any top tier data today for the calendar, 1.5475 comes as next support while we see if the pair can drift higher through the gap, otherwise 1.5425 and 1.5400 could be last defences before the pair resumes the overall bear trend.