14 Mar 2014
Flash: GBP/USD slips back towards the current March low at 1.6569 - Commerzbank
FXStreet (Barcelona) - Axel Rudolph, Senior Technical Analyst at Commerzbank notes that on Wednesday GBP/USD briefly dipped below the late February low at 1.6585 and hit the 1.6570 level before rapidly rising on Thursday to 1.6719 before collapsing.
Key Quotes
“Immediate downside targets are seen between the one month support line at 1.6567 and the 55 day moving average at 1.6542. We note that the Elliott wave counts on the daily, weekly and monthly charts indicate that this is the end phase of the move and we would expect to still see the market struggle ahead of the 1.6822 February high.”
“Having said that, we still remain unable to rule out further stabs higher and currently cannot discount a move towards 1.7041/51 (although this is not our favoured scenario). We suspect that the market will need to break back below 1.6542 (55 day moving average) in order to re-focus attention on to the 1.6259/29 support zone which remains key (September high and the 23.6% retracement of the move up from July 2013).”
Key Quotes
“Immediate downside targets are seen between the one month support line at 1.6567 and the 55 day moving average at 1.6542. We note that the Elliott wave counts on the daily, weekly and monthly charts indicate that this is the end phase of the move and we would expect to still see the market struggle ahead of the 1.6822 February high.”
“Having said that, we still remain unable to rule out further stabs higher and currently cannot discount a move towards 1.7041/51 (although this is not our favoured scenario). We suspect that the market will need to break back below 1.6542 (55 day moving average) in order to re-focus attention on to the 1.6259/29 support zone which remains key (September high and the 23.6% retracement of the move up from July 2013).”