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10 Dec 2014
Major divergence of RSI sees GBP/USD move to a new low – Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, notes that large divergence of the RSI led GBP/USD towards a new low of 1.5542, and anticipates the pair to retest 1.5765 levels.
Key Quotes
“GBP/USD is seeing recovery off TD support at 1.5530. The new low of 1.5542 has been accompanied by a large divergence of the RSI and we believe near term we will see a test of the 1.5765 5 month down trend.”
“The 1.5530 level is regarded as the break down point to 1.5320, the 78.6% retracement of the move from 2013. Please note we have 13 counts on the 240 minute chart and TD support at 1.5530 – both suggest near term rallies ahead of further weakness.”
“Above 1.5765 downtrend, the market is expected to find good resistance offered by the 1.5855 November 2013 low. Key resistance remains at 1.6184, the October 21 high. While capped here, an overall negative bias remains intact.”
Key Quotes
“GBP/USD is seeing recovery off TD support at 1.5530. The new low of 1.5542 has been accompanied by a large divergence of the RSI and we believe near term we will see a test of the 1.5765 5 month down trend.”
“The 1.5530 level is regarded as the break down point to 1.5320, the 78.6% retracement of the move from 2013. Please note we have 13 counts on the 240 minute chart and TD support at 1.5530 – both suggest near term rallies ahead of further weakness.”
“Above 1.5765 downtrend, the market is expected to find good resistance offered by the 1.5855 November 2013 low. Key resistance remains at 1.6184, the October 21 high. While capped here, an overall negative bias remains intact.”