13 Nov 2013
Flash: GBP/USD 55 day ma eroded - Commerzbank
FXstreet.com (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that GBP/USD has eroded the 55 day ma at 1.5966, and the 1.5895 October low.
Key Quotes
“We continue to wait for a CLOSE below this level to confirm that the market has topped. While this may provoke a couple more days of consolidation, we remain bearish. The market last week tested and failed at the 61.8% retracement at 1.6122 3 times (of the move down from the 1.6255 peak) and while capped here the market remains directly offered.”
“We regard the pattern as a potential double top and a close below 1.5895 will complete the pattern to offer a minimum downside measurement to 1.5535.”
“Given the close proximity of the 200 day ma at 1.5496 to this target zone this makes a good initial downside target. Above 1.6125/60 would allow for a retest of the recent highs at 1.6255/60.”
Key Quotes
“We continue to wait for a CLOSE below this level to confirm that the market has topped. While this may provoke a couple more days of consolidation, we remain bearish. The market last week tested and failed at the 61.8% retracement at 1.6122 3 times (of the move down from the 1.6255 peak) and while capped here the market remains directly offered.”
“We regard the pattern as a potential double top and a close below 1.5895 will complete the pattern to offer a minimum downside measurement to 1.5535.”
“Given the close proximity of the 200 day ma at 1.5496 to this target zone this makes a good initial downside target. Above 1.6125/60 would allow for a retest of the recent highs at 1.6255/60.”