Back
7 Mar 2014
Flash: GBP/USD Bid but unable to clear the range - Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that GBP/USD pressure is on the topside and we have traded through the topside of the triangle, but we have not really broken out of the range.
Key Quotes
“Breaks from these triangles are meant to be dynamic, this is not so far and is raise a question mark over its validity. 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 cannot rule out 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
“Breaks from these triangles are meant to be dynamic, this is not so far and is raise a question mark over its validity. 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 cannot rule out 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).”