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11 Mar 2014
Flash: GBP/USD should drop back to 1.6585 late February low - Commerzbank
FXStreet (Barcelona) - Axel Rudolph, Senior Technical Analyst at Commerzbank notes that GBP/USD is starting to come off as expected and targets the late February low at 1.6585.
Key Quotes
“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 market struggle ahead of the 1.6822 February high.”
“Having said that, we still remain unable to rule out further stabs higher and currently cannot discount a move towards 1.7041/51 (although this is not our favoured scenario).”
“We suspect that 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 zone which remains key (September high and the 23.6% retracement of the move up from July 2013).
Key Quotes
“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 market struggle ahead of the 1.6822 February high.”
“Having said that, we still remain unable to rule out further stabs higher and currently cannot discount a move towards 1.7041/51 (although this is not our favoured scenario).”
“We suspect that 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 zone which remains key (September high and the 23.6% retracement of the move up from July 2013).