10 Feb 2014
Flash: GBP/USD bounce from 1.6259/29 viewed as corrective only - Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that GBP/USD held the 1.6259/29 support 3 times last week (September high and the 23.6% retracement of the move up from July 2013).
Key Quotes
“The rebound is expected to terminate 1.6425/65 ahead of further losses. A close below the 1.6259/29 support should be enough 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 has topped.”
Key Quotes
“The rebound is expected to terminate 1.6425/65 ahead of further losses. A close below the 1.6259/29 support should be enough 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 has topped.”