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29 Jan 2014
Flash: GBP/USD ignoring its key day reversal - Commerzbank
FXstreet.com (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that GBP/USD has consolidated leaving the outlook in limbo and the recovery has not been quite enough to negate the recent key day reversal – but it is close!.
Key Quotes
“Fridays reversal at key resistance (1.6635 200 month ma and long term pivot line at 1.6657) suggests that the market may well have topped. However we will need to see a close below the 1.6397 uptrend to confirm the market has failed (and preferably below
the 1.6259 September high).
“Please note the weekly RSI has diverged and we have a TD perfected set up on the weekly, this in conjunction with a key day reversal suggests we have also topped.
A close below the 1.6259 support should then be enough to signal losses to the 1.5855
November low.”
Key Quotes
“Fridays reversal at key resistance (1.6635 200 month ma and long term pivot line at 1.6657) suggests that the market may well have topped. However we will need to see a close below the 1.6397 uptrend to confirm the market has failed (and preferably below
the 1.6259 September high).
“Please note the weekly RSI has diverged and we have a TD perfected set up on the weekly, this in conjunction with a key day reversal suggests we have also topped.
A close below the 1.6259 support should then be enough to signal losses to the 1.5855
November low.”