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24 Feb 2014
GBP/USD testing the downside through 1.66 handle
FXStreet (Guatemala) - GBP/USD is on the offer and extending Fridays losses from 1.6720’s and now tests the 1.66 handle on the way down.
Composite PMI Services fell in Feb to 53.5 versus 56.2 in January and this reads as the lowest since October 2013. Looking ahead, Karen Jones, chief analyst a Commerzbank explained, that despite the fact that the market has eroded the near term uptrend and the daily RSI has not confirmed the recent 1.6822 high; “We suspect that the market will need to break below 1.6630/00 (38.2% retracement of the move seen so far in February) in order to alleviate its immediate upside bias”. She added, that while she acknowledges that the Elliott wave counts on the daily, weekly and monthly charts indicate that this is the end phase of the move she remains unable to rule out an extension to the 1.7041 2009 peak (although this is not our favoured scenario). “The market will need to break back below 1.6550 in order to re-focus on the 1.6259/29 support which remains key (September high and the 23.6% retracement of the move up from July 2013)”.
GBP/USD Levels
The 20 DMA is 1.6525, the 50 DMA is 1.6468 and the 200 DMA is 1.5903. RSI (14) reads 45.49. Supports are ascending from 1.6538, 1.6559,
1.6594, 1.6605, 1.6624, 1.6649, 1.6688,1.6725 and 1.6745.
Composite PMI Services fell in Feb to 53.5 versus 56.2 in January and this reads as the lowest since October 2013. Looking ahead, Karen Jones, chief analyst a Commerzbank explained, that despite the fact that the market has eroded the near term uptrend and the daily RSI has not confirmed the recent 1.6822 high; “We suspect that the market will need to break below 1.6630/00 (38.2% retracement of the move seen so far in February) in order to alleviate its immediate upside bias”. She added, that while she acknowledges that the Elliott wave counts on the daily, weekly and monthly charts indicate that this is the end phase of the move she remains unable to rule out an extension to the 1.7041 2009 peak (although this is not our favoured scenario). “The market will need to break back below 1.6550 in order to re-focus on the 1.6259/29 support which remains key (September high and the 23.6% retracement of the move up from July 2013)”.
GBP/USD Levels
The 20 DMA is 1.6525, the 50 DMA is 1.6468 and the 200 DMA is 1.5903. RSI (14) reads 45.49. Supports are ascending from 1.6538, 1.6559,
1.6594, 1.6605, 1.6624, 1.6649, 1.6688,1.6725 and 1.6745.