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6 Feb 2015
GBP/USD erodes its 7 month downtrend – Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, notes that GBP/USD has eroded its 7 month downtrend, with the pair expected to remain bid above 1.5165/43.
Key Quotes
“GBP/USD continues to base and has eroded the 7 month downtrend at 1.5312. On the intraday chart the Elliott wave count is more positive and we will go with the break higher for now and adopt a more positive stance near term.”
“The market will stay bid above 1.5165/43 (minor Fibo and 20 day ma).”
“Above the downtrend, key resistance is the 1.5855 November 2013 low, however corrective rallies are indicated to terminate ahead of here circa 1.5580/1.5645.”
“Below 1.5140 would alleviate immediate upside pressure and suggest a retest of the support circa 1.4990.”
“Recommended Trade: Attempt small longs on dips to 1.5268, add 1.5175, stop 1.5140.”
“Shorter term (1-3 weeks): Holding over 1.4910.”
“Medium term (1-3 months): Targets 1.4910/1.4813 long term Fibo and 2013 low. Below here targets 1.4290/30.”
Key Quotes
“GBP/USD continues to base and has eroded the 7 month downtrend at 1.5312. On the intraday chart the Elliott wave count is more positive and we will go with the break higher for now and adopt a more positive stance near term.”
“The market will stay bid above 1.5165/43 (minor Fibo and 20 day ma).”
“Above the downtrend, key resistance is the 1.5855 November 2013 low, however corrective rallies are indicated to terminate ahead of here circa 1.5580/1.5645.”
“Below 1.5140 would alleviate immediate upside pressure and suggest a retest of the support circa 1.4990.”
“Recommended Trade: Attempt small longs on dips to 1.5268, add 1.5175, stop 1.5140.”
“Shorter term (1-3 weeks): Holding over 1.4910.”
“Medium term (1-3 months): Targets 1.4910/1.4813 long term Fibo and 2013 low. Below here targets 1.4290/30.”