20 Jan 2014
Flash: GBP/USD rally has neutralised immediate outlook but not restored upmove - Commerzbank
FXstreet.com (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that GBP/USD showed no follow through on the downside last week after breaking its 6 month uptrend and following its rally post good retail sales it has somewhat neutralised our immediate outlook.
Key Quotes
“Given that the market has not cleared its near term resistance line at 1.6440, we will for now continue to give the downside the benefit of the doubt and should see the 1.6259 October high tested.”
“My intraday charts are suggesting that the market may hold in this vicinity on the initial test. However a close below here would be enough to adopt a more aggressively negative stance and target the 1.5855 November low. Above 1.6440 would increase the risk of a rally to 1.6500/20 - we view the recent peak at 1.6603 as an interim top.”
Key Quotes
“Given that the market has not cleared its near term resistance line at 1.6440, we will for now continue to give the downside the benefit of the doubt and should see the 1.6259 October high tested.”
“My intraday charts are suggesting that the market may hold in this vicinity on the initial test. However a close below here would be enough to adopt a more aggressively negative stance and target the 1.5855 November low. Above 1.6440 would increase the risk of a rally to 1.6500/20 - we view the recent peak at 1.6603 as an interim top.”