25 Mar 2014
GBP/USD eroding cloud support - Commerzbank
Karen Jones, Head of Technical Analysis at Commerzbank notes that GBP/USD continues to weigh on the downside following last weeks erosion of its 55 day moving average and the 8 month uptrend.
Key Quotes
“It is in the process of eroding cloud support and remains in a vulnerable state.”
“We have seen two closes below the 8 month uptrend and this should be enough to to 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).”
“We suspect that the 1.6625 20 day ma will now cap intraday rallies.Resistance at 1.6625/65 guards the 1.6750/1.6822 resistances.”
Key Quotes
“It is in the process of eroding cloud support and remains in a vulnerable state.”
“We have seen two closes below the 8 month uptrend and this should be enough to to 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).”
“We suspect that the 1.6625 20 day ma will now cap intraday rallies.Resistance at 1.6625/65 guards the 1.6750/1.6822 resistances.”