27 Nov 2013
Flash: GBP/USD completing a cycle of gains off July’s 1.4815 low - ANZ
FXstreet.com (Barcelona) - GBP/USD looks set to end a period of sustained gains off July’s 1.4815 low, notes Tim Riddell Head of Global Markets Research at ANZ.
key Quotes
"Although recent gyrating in the 1.5850-1.6200 area will be seen as forming a base for pronounced gains and the potential for measured moves towards 1.6750-75, or even 1.7075, wave counts and weekly momentum profiles could counter this and actually suggest that GBP is completing a cycle of gains off July’s 1.4815 low."
"Unless gains become decidedly more dynamic, any faltering on a push towards 1.6380 would be seen as increasing the end cycle bias. Any slippage now below 1.6070 could hail an early end of GBP gains."
"Supportive daily momentum suggests that current rebounds off 1.5850 could form a series of measured moves, through 1.6300 towards the 1.65’s. However, given the profile of weekly momentum and background bias that the current move is completing a cycle of moves off July’s 1.4810-15 low, there is notable risk that further gains may be more limited with the 1.6250-1.6300 area potentially acting as a cap."
key Quotes
"Although recent gyrating in the 1.5850-1.6200 area will be seen as forming a base for pronounced gains and the potential for measured moves towards 1.6750-75, or even 1.7075, wave counts and weekly momentum profiles could counter this and actually suggest that GBP is completing a cycle of gains off July’s 1.4815 low."
"Unless gains become decidedly more dynamic, any faltering on a push towards 1.6380 would be seen as increasing the end cycle bias. Any slippage now below 1.6070 could hail an early end of GBP gains."
"Supportive daily momentum suggests that current rebounds off 1.5850 could form a series of measured moves, through 1.6300 towards the 1.65’s. However, given the profile of weekly momentum and background bias that the current move is completing a cycle of moves off July’s 1.4810-15 low, there is notable risk that further gains may be more limited with the 1.6250-1.6300 area potentially acting as a cap."