29 May 2014
GBP/USD top formed at 1.7000? – Commerzbank
FXStreet (Edinburgh) - The idea of a recent top in the 1.7000 area gains further ground with the ongoing sharp decline, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.
Key Quotes
“GBP/USD accelerated lower, breaking below the 6 month uptrend. The demise of this and the May low at 1.6731 adds weight to the idea that the market has topped at 1.70”.
“Initial support lies at the 1.6683/72 late March high and the mid-April low and then we would expect losses to 1.6480/67 the 23.6% retracement of the 2013-2014 move and the March low”.
“Rallies are likely to find that the previous uptrend now offers resistance at 1.6790 and the short term downtrend at 1.6881 should now cap”.
Key Quotes
“GBP/USD accelerated lower, breaking below the 6 month uptrend. The demise of this and the May low at 1.6731 adds weight to the idea that the market has topped at 1.70”.
“Initial support lies at the 1.6683/72 late March high and the mid-April low and then we would expect losses to 1.6480/67 the 23.6% retracement of the 2013-2014 move and the March low”.
“Rallies are likely to find that the previous uptrend now offers resistance at 1.6790 and the short term downtrend at 1.6881 should now cap”.