10 Jul 2013
Flash: GBP/USD limited support - Commerzbank
FXstreet.com (London) - Karen Jones, Chief Analyst at Commerzbank said GBP/USD sold off to and has again held (on a closing basis) support at 1.4854/32, the 61.8% retracement of the 2009 move higher and the March low.
“We note the divergence of the 240 minute RSI and currently we would continue to allow for a small rebound. We suspect that intraday rallies will struggle to clear the May lows at 1.5015 and the accelerated downtrend at 1.5139 should remain capped by 1.5300/25 and while capped here, the market will remain directly offered. Please note there is very little support between 1.4832 and the 1.4229 2010 low.”
“We note the divergence of the 240 minute RSI and currently we would continue to allow for a small rebound. We suspect that intraday rallies will struggle to clear the May lows at 1.5015 and the accelerated downtrend at 1.5139 should remain capped by 1.5300/25 and while capped here, the market will remain directly offered. Please note there is very little support between 1.4832 and the 1.4229 2010 low.”