11 Jun 2013
Flash: Corrective rally expected to terminate ahead of the 200 day ma - Commerzbank
FXstreet.com (London) - The Analyst teams at Commerzbank said that GBP/USD held relatively steady yesterday to leave the outlook unchanged.
200 day ma for Sterling ahead
They noted that the market last week rallied sharply higher to reach the top of its 3 month up channel and 200 day ma. These are located at 1.5690/1.5703 and are expected to hold the initial test.
End of Corrective Move in The Pound
The analyst teams at Commerzbank 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. A 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.
200 day ma for Sterling ahead
They noted that the market last week rallied sharply higher to reach the top of its 3 month up channel and 200 day ma. These are located at 1.5690/1.5703 and are expected to hold the initial test.
End of Corrective Move in The Pound
The analyst teams at Commerzbank 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. A 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.