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26 Feb 2014
Flash: GBP/USD break of support at 1.6600 not sustained - Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that GBP/USD was reasonably bid throughout the day yesterday, but could not clear resistance at 1.6730/40.
Key Quotes
“The recent break of the 1.6600 Fibonacci support was not sustained and it is possible that it was only an ‘a-b-c’ correction lower. The market will need to break back below 1.6535 (50% retracement) in order to re-focus attention on to the 1.6259/29 support which remains key (September high and the 23.6% retracement of the move up from July 2013).”
“We note that the Elliott wave counts on the daily, weekly and monthly charts indicate that this is the end phase of the move and we would expect to see the intraday rallies remain capped by 1.6735 ahead of the 1.6819 recent high.”
Key Quotes
“The recent break of the 1.6600 Fibonacci support was not sustained and it is possible that it was only an ‘a-b-c’ correction lower. The market will need to break back below 1.6535 (50% retracement) in order to re-focus attention on to the 1.6259/29 support which remains key (September high and the 23.6% retracement of the move up from July 2013).”
“We note that the Elliott wave counts on the daily, weekly and monthly charts indicate that this is the end phase of the move and we would expect to see the intraday rallies remain capped by 1.6735 ahead of the 1.6819 recent high.”