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28 Jan 2015
GBP/USD upside corrective – Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, views that GBP/USD remains upside expecting near term rallies to find resistance at 1.5300 and above this 1.5388 levels.
Key Quotes
“GBP/USD is upside corrective near term having virtually reached target of the 1.4910/1.4813 long term Fibonacci retracement and 2013 low. There is a large divergence of the daily RSI on this move to a move to a new low and we would allow for a corrective rebound back towards the 1.5388 downtrend.”
“Near term rallies are expected to find initial resistance at 1.5300, but key resistance is the downtrend at 1.5388, while capped here, our negative bias will remain entrenched. Above the downtrend, key resistance is the 1.5855 November 2013 low, however corrective rallies are expected to terminate ahead of here circa 1.5400/1.5685.”
“The support zone down to 1.4813 is considered to be the major break down point longer term to 1.4290/30.”
“Recommended Trade: Reinstate longs at market, add 1.5130, stops 1.5055. Exit 1.5375.”
“Medium term (1-3 months): Targets 1.4910/1.4813 long term Fibo and 2013 low. Below here targets 1.4290/30.”
Key Quotes
“GBP/USD is upside corrective near term having virtually reached target of the 1.4910/1.4813 long term Fibonacci retracement and 2013 low. There is a large divergence of the daily RSI on this move to a move to a new low and we would allow for a corrective rebound back towards the 1.5388 downtrend.”
“Near term rallies are expected to find initial resistance at 1.5300, but key resistance is the downtrend at 1.5388, while capped here, our negative bias will remain entrenched. Above the downtrend, key resistance is the 1.5855 November 2013 low, however corrective rallies are expected to terminate ahead of here circa 1.5400/1.5685.”
“The support zone down to 1.4813 is considered to be the major break down point longer term to 1.4290/30.”
“Recommended Trade: Reinstate longs at market, add 1.5130, stops 1.5055. Exit 1.5375.”
“Medium term (1-3 months): Targets 1.4910/1.4813 long term Fibo and 2013 low. Below here targets 1.4290/30.”