Back
18 Mar 2014
Flash: GBP/USD holding the 55 day ma - Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that GBP/USD has tested but failed to break the late February low at 1.6585 and is stabilising near term just above the 55 day moving average at 1.6548.
Key Quotes
“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.”
“However we have yet to see a sell signal. We suspect that the market will need to break back below 1.6532 (the 8 month uptrend) 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).”
“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).”
Key Quotes
“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.”
“However we have yet to see a sell signal. We suspect that the market will need to break back below 1.6532 (the 8 month uptrend) 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).”
“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).”