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24 Feb 2014
Flash: GBP/USD support at 1.6600 needs to give way to alleviate up side pressure - Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that despite the fact that GBP/USD has eroded the near term uptrend and the daily RSI has not confirmed the recent 1.6822 high; she suspects 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.
Key Quotes
“While we acknowledge that the Elliott wave counts on the daily, weekly and monthly charts indicate that this is the end phase of the move we remain 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).”
Key Quotes
“While we acknowledge that the Elliott wave counts on the daily, weekly and monthly charts indicate that this is the end phase of the move we remain 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).”