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2 Oct 2013
Flash: Below 1.6117 targets 1.5799, then what? – Commerzbank
FXstreet.com (London) - Karen Jones, chief strategist at Commerzbank uses RSI divergence to identify the potential for a correction.
Key Quotes:
“GBP/USD’s high of 1.6259 was accompanied by a large divergence of the daily RSI and is losing momentum ahead of the 2009-2013 downtrend at 1.6327, where we would look for signs of failure”.
“The focus shifts to the 1.6117 accelerated uptrend”.
“Below 1.6117 will target the 1.5799 3 month uptrend”.
“The market will need to close below here to confirm that it has topped short term and trigger losses to 1.5430, then 1.5104”.
Key Quotes:
“GBP/USD’s high of 1.6259 was accompanied by a large divergence of the daily RSI and is losing momentum ahead of the 2009-2013 downtrend at 1.6327, where we would look for signs of failure”.
“The focus shifts to the 1.6117 accelerated uptrend”.
“Below 1.6117 will target the 1.5799 3 month uptrend”.
“The market will need to close below here to confirm that it has topped short term and trigger losses to 1.5430, then 1.5104”.