4 Mar 2014
Flash: GBP/USD giving few clues to direction, but upside bias - Commerzbank
FXStreet (Edinburgh) - Karen Jones, Head of Technical Analysis at Commerzbank notes that GBP/USD despite a brief spike above resistance at 1.6730/40 the market continues to give few clues to direction.
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 see the market struggle ahead of the 1.6822 recent high.”
“But for now we remain unable to rule out further stabs higher and currently must allow for a move towards 1.7041/51 (although this is not our favoured scenario).”
“We suspect that the market will need to break back below 1.6535 (50% retracement) in order to re-focus attention on to the 1.6259/29 support which remains key (September high and the 23.6% retracement of the move up from July 2013).”
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 see the market struggle ahead of the 1.6822 recent high.”
“But for now we remain unable to rule out further stabs higher and currently must allow for a move towards 1.7041/51 (although this is not our favoured scenario).”
“We suspect that the market will need to break back below 1.6535 (50% retracement) in order to re-focus attention on to the 1.6259/29 support which remains key (September high and the 23.6% retracement of the move up from July 2013).”