18 Feb 2014
Flash: GBP/USD RSI has not confirmed the recent high
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that GBP/USD upmove is a little over stretched and the daily RSI has not confirmed the recent 1.6822 high and as a consequence the market is likely to correct lower near term or at least consolidate some of its recent gains.
Key Quotes
“Ideally the retracement should hold circa 1.6600 (38.2% retracement of the move seen so far in February) for an upside bias to remain, initial support lies 1.6685/67.”
“While we acknowledge that the Elliott wave counts on the daily, weekly and monthly charts indicate that this is the end phase of the move we remain unable to rule out an extension to the
1.7041 2009 peak.”
“The market will need to break back below 1.6550 in order to re-focus on the 1.6259/29 support which remains key (September high and the 23.6% retracement of the move up from July 2013).”
Key Quotes
“Ideally the retracement should hold circa 1.6600 (38.2% retracement of the move seen so far in February) for an upside bias to remain, initial support lies 1.6685/67.”
“While we acknowledge that the Elliott wave counts on the daily, weekly and monthly charts indicate that this is the end phase of the move we remain unable to rule out an extension to the
1.7041 2009 peak.”
“The market will need to break back below 1.6550 in order to re-focus on the 1.6259/29 support which remains key (September high and the 23.6% retracement of the move up from July 2013).”