GBP/USD attention remains on the 5 month uptrend - Commerzbank

FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that GBP/USD saw a small recovery to leave our outlook unchanged.

Key Quotes

“Last week the market eased back from the 1.6667 January high BUT has not yet broken lower. It has seen 4 attempts to breach this level and having failed to do so, attention has reverted to the 1.6545 uptrend.”

“This is now exposed and failure here will trigger losses to the 1.6470/67 recent low and Fibonacci support. A close below here is needed to confirm that the market has topped and 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).”

“Above 1.6667/83 will allow for an extension to the 1.6822 February high. The weekly and monthly Elliott wave counts are suggesting that this is/will be the end of the move.”

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