Back
10 Mar 2014
Flash: GBP/USD recent rise has been accompanied by negative divergence - Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that last week’s GBP/USD rise to the 1.6785 level has been accompanied by negative divergence on the daily RSI which is why we
have neutralised our short term view.
Key Quotes
“We note that the Elliott wave counts on the daily, weekly and monthly charts indicate that this is the end phase of the move and we would expect to see the market struggle ahead of the 1.6822 February high.”
“Having said that, we still remain unable to rule out further stabs higher and currently cannot discount a move towards 1.7041/51 (although this is not our favoured scenario).”
“We suspect that the market will need to break back below 1.6535 (50% retracement) in order to re-focus attention on to the 1.6259/29 support zone which remains key (September high and the 23.6% retracement of the move up from July 2013).”
have neutralised our short term view.
Key Quotes
“We note that the Elliott wave counts on the daily, weekly and monthly charts indicate that this is the end phase of the move and we would expect to see the market struggle ahead of the 1.6822 February high.”
“Having said that, we still remain unable to rule out further stabs higher and currently cannot discount a move towards 1.7041/51 (although this is not our favoured scenario).”
“We suspect that the market will need to break back below 1.6535 (50% retracement) in order to re-focus attention on to the 1.6259/29 support zone which remains key (September high and the 23.6% retracement of the move up from July 2013).”