10 Oct 2013
Flash: GBP/USD uptrend at 1.5896 looks exposed – Commerzbank
FXstreet.com (Athens) – Karen Jones, Head Technical Analyst at Commerzbank mentions that the GBP/USD sold off in earnest yesterday and has already reached the 38.2% retracement of the move up from July – this is located at 1.5917.
Key Quotes
“Directly below here we have the 3 month uptrend at 1.5896, while it is possible that this will hold the initial test, it is not expected to hold and provoke recovery.”
“Failure at the uptrend should trigger another leg lower to the 38.2% retracement at 1.5706 and possibly 1.5536, the 38.2% and 50% retracements – we do not anticipate that the 200 day ma at 1.5478 will get taken out on this attempt.”
“Intraday rallies are likely to find the 20 day ma at 1.6052 now acts as resistance ahead of 1.6125.”
Key Quotes
“Directly below here we have the 3 month uptrend at 1.5896, while it is possible that this will hold the initial test, it is not expected to hold and provoke recovery.”
“Failure at the uptrend should trigger another leg lower to the 38.2% retracement at 1.5706 and possibly 1.5536, the 38.2% and 50% retracements – we do not anticipate that the 200 day ma at 1.5478 will get taken out on this attempt.”
“Intraday rallies are likely to find the 20 day ma at 1.6052 now acts as resistance ahead of 1.6125.”