10 Jun 2013
Flash: GBP/USD topped – Commerzbank
FXstreet.com (London) - Karen Jones, senior analyst for Commerzbank explained that last week GBP/USD rallied sharply higher.
The pair rallied to reach the top of its 3 month up channel (see chart) and 200 day ma, and Karen Jones was saying that these are located at 1.5684/1.5704 and are expected to hold the initial test. Her team suspect that this is the end of the corrective move. They note the 13 count on the daily TD Combo and this adds weight to that view, adding break below the 1.5425/1.5390 (38.2% retracement) is needed to alleviate topside pressure and signal a slide back to 1.5270 en route to 1.5155 (retracements of this recent leg higher) and base of the channel at 1.5035. Above 1.5706 lies the 1.5797 200 week ma and 1.6040, the 78.6% retracement of the move seen this year.
The pair rallied to reach the top of its 3 month up channel (see chart) and 200 day ma, and Karen Jones was saying that these are located at 1.5684/1.5704 and are expected to hold the initial test. Her team suspect that this is the end of the corrective move. They note the 13 count on the daily TD Combo and this adds weight to that view, adding break below the 1.5425/1.5390 (38.2% retracement) is needed to alleviate topside pressure and signal a slide back to 1.5270 en route to 1.5155 (retracements of this recent leg higher) and base of the channel at 1.5035. Above 1.5706 lies the 1.5797 200 week ma and 1.6040, the 78.6% retracement of the move seen this year.