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11 Dec 2014
GBP/USD probing the 5 month downtrend – Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, notes that the GBP/USD pair is probing the 5 month downtrend at 1.5751 after continuing to see recovery off the support at 1.5530.
Key Quotes
“GBP/USD continues to see recovery off TD support at 1.5530. The new low of 1.5542 has been accompanied by a large divergence of the RSI and the market is probing the 1.5751 5 month down trend. The risk has increased that this will be eroded. Above the 1.5751 downtrend, the market is expected to find good resistance offered by the 1.5855 November 2013 low. Key resistance remains at 1.6184, the October 21 high. While capped here, an overall negative bias remains intact.”
“The 1.5530 level is regarded as the break down point to 1.5320, the 78.6% retracement of the move from 2013. Please note we have 13 counts on the 240 minute chart and TD support at 1.5530 – both suggest near term rallies ahead of further weakness.”
Key Quotes
“GBP/USD continues to see recovery off TD support at 1.5530. The new low of 1.5542 has been accompanied by a large divergence of the RSI and the market is probing the 1.5751 5 month down trend. The risk has increased that this will be eroded. Above the 1.5751 downtrend, the market is expected to find good resistance offered by the 1.5855 November 2013 low. Key resistance remains at 1.6184, the October 21 high. While capped here, an overall negative bias remains intact.”
“The 1.5530 level is regarded as the break down point to 1.5320, the 78.6% retracement of the move from 2013. Please note we have 13 counts on the 240 minute chart and TD support at 1.5530 – both suggest near term rallies ahead of further weakness.”