23 Jul 2014
GBP/USD key support at 1.7037 – Commerzbank
FXStreet (Edinburgh) - Karen Jones, Head of FICC Technical Analysis at Commerzbank, underlines the significance of the 1.7037 support.
Key Quotes
“GBP/USD remains under pressure and the outlook remains negative while capped by 1.7205”.
“The recent high has been accompanied by a large divergence of the daily RSI – this reflects a loss of upside momentum and overhead lies the major resistance at 1.7300/31 – both of which suggest a more negative stance is required”.
“This resistance is a combination of a Fibonacci extension and the 50% retracement at 1.7331 (of the move down from the 2007 peak)”.
“The key support to crack is the base of the expanding top at 1.7037 (on a closing basis)”.
“Intraday rallies are indicated to terminate circa 1.7100/25. We look for losses to extend back short term to the 2014 uptrend, which today is located at 1.6883”.
Key Quotes
“GBP/USD remains under pressure and the outlook remains negative while capped by 1.7205”.
“The recent high has been accompanied by a large divergence of the daily RSI – this reflects a loss of upside momentum and overhead lies the major resistance at 1.7300/31 – both of which suggest a more negative stance is required”.
“This resistance is a combination of a Fibonacci extension and the 50% retracement at 1.7331 (of the move down from the 2007 peak)”.
“The key support to crack is the base of the expanding top at 1.7037 (on a closing basis)”.
“Intraday rallies are indicated to terminate circa 1.7100/25. We look for losses to extend back short term to the 2014 uptrend, which today is located at 1.6883”.