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13 Jun 2013
GBP/USD top of channel
FXstreet.com (London) - GBP/USD has risen to the top of the channel, touching 1.5702 in Asia and rejected at 1.5700 in the European open where it now battles below 1.5690.
GBP/USD toppy
As the market digests the reality of the UK economy, i.e. with low wages being the substitute for a lower jobless claimant count in the UK economy, perhaps the pound might be looking somewhat overvalued trading at these levels? Commerzbank are of the opinion on a technical basis.
GBP/USD 200 d ma last defence
Axel Rudolph, Senior Analyst for Commerbank said that GBP/USD is nearing the top of its 3 month up channel and 200 day moving average at 1.5701/03. This resistance area they expect to cap. They suspect that we are now trading towards the end of the corrective move higher. He explained that break below the 1.5490 June 7 low is needed to alleviate immediate upside pressure and signal a slide back to the 55 day moving average at 1.5334 en route to the base of the channel at 1.5044. However, he warns that above 1.5703 lies the 1.5797 200 week moving average and 1.6040, the 78.6% Fibonacci retracement of the down move seen this year.
GBP/USD toppy
As the market digests the reality of the UK economy, i.e. with low wages being the substitute for a lower jobless claimant count in the UK economy, perhaps the pound might be looking somewhat overvalued trading at these levels? Commerzbank are of the opinion on a technical basis.
GBP/USD 200 d ma last defence
Axel Rudolph, Senior Analyst for Commerbank said that GBP/USD is nearing the top of its 3 month up channel and 200 day moving average at 1.5701/03. This resistance area they expect to cap. They suspect that we are now trading towards the end of the corrective move higher. He explained that break below the 1.5490 June 7 low is needed to alleviate immediate upside pressure and signal a slide back to the 55 day moving average at 1.5334 en route to the base of the channel at 1.5044. However, he warns that above 1.5703 lies the 1.5797 200 week moving average and 1.6040, the 78.6% Fibonacci retracement of the down move seen this year.