1 Jul 2015
GBP/USD: rising wedge patter? 1.5550 to trigger major losses - CB
FXStreet (Guatemala) - Karen Jones, chief analyst at Commerzbank noted the potential rising wedge pattern on the daily chart and offered the surrounding technical conditions in GBP/USD.
Key Quotes:
"GBP/USD bias negative. We are somewhat cautious as given the recent failure of the market around the 50% retracement and 200 week ma (circa 1.5879) we would have expected to see more downside follow through by now."
"We are unable to ignore the possibility of one more leg up to the 1.5960 resistance line ahead of failure – but this is not our favoured scenario. Intraday Elliott wave count has become more negative and is suggesting that the market will now fail on rallies to the 1.5780 area."
"The market will have to drop back below 1.5550 (February high) to trigger losses to the 3 month uptrend at 1.5480. Only below here will cast attention back to the support at 1.5171, the June low."
Key Quotes:
"GBP/USD bias negative. We are somewhat cautious as given the recent failure of the market around the 50% retracement and 200 week ma (circa 1.5879) we would have expected to see more downside follow through by now."
"We are unable to ignore the possibility of one more leg up to the 1.5960 resistance line ahead of failure – but this is not our favoured scenario. Intraday Elliott wave count has become more negative and is suggesting that the market will now fail on rallies to the 1.5780 area."
"The market will have to drop back below 1.5550 (February high) to trigger losses to the 3 month uptrend at 1.5480. Only below here will cast attention back to the support at 1.5171, the June low."