11 Apr 2014
GBP technically bearish - RBS
FXStreet (Guatemala) - Strategists at RBS have noted an evening star candlestick pattern for GBP/USD near a key 1.6812 resistance being formed by the 138.2% Fibonacci projection from the Jul-Oct 2013 impulse wave.
Key Quotes:
“Also, weekly MACD had turned bearish, indicating a long-term change in sentiment looming”.
“These signals suggest the price should pull back to 1.6600 level and once broken, form a double-top pattern with 1.6260 and 1.6055 targets”.
“A sustained break above 1.6830 changes the short term view to testing the 1.6983 before forming a long-term reversal”.
“Overall I favour being short from 1.6812 to 1.6600 onto 1.6260 and 1.6055 stopping on a sustained break above 1.7000”.
Key Quotes:
“Also, weekly MACD had turned bearish, indicating a long-term change in sentiment looming”.
“These signals suggest the price should pull back to 1.6600 level and once broken, form a double-top pattern with 1.6260 and 1.6055 targets”.
“A sustained break above 1.6830 changes the short term view to testing the 1.6983 before forming a long-term reversal”.
“Overall I favour being short from 1.6812 to 1.6600 onto 1.6260 and 1.6055 stopping on a sustained break above 1.7000”.