Monday, August 2, 2010

GBP/USD, broke through 200-day MA, targeting 1.5870/1.5970 - Commerzbank

Forex Special - The Pound's recovery from 1.4200 area in May, extended higher last week, piercing through the 200-day MA, targeting 1.5870/1.5970 area, the 61.8% fibonacci retracement of the Aug 09/May 10 decline),says Karen Jones, technical analyst at Commerzbank.

The pair targets 1.5870/1.5970 according to Jones, although resistance levels are expected to intensify above 1.5710: "Through its 200 day ma and the October 2009 low (1.5710) and targets 1.5870/1.5970 (the 61.8% retracement of the move down from 1.7044 to 1.4225). Above 1.5710 resistance intensifies – we have the top of the short term channel at 1.5836 and we look for the upmove to struggle."

On the downside, 1.5475 and 1.5312 support levels are expected to contain dips, affirms Jones: "Dips lower are expected to find nearby support at 1.5475 and be contained by the base of its 2 month up channel at 1.5312, and while this holds an upside bias remains."

GBP/USD (Aug 02 at 07:43 GMT)

1.5779/84 (0.45%)

H 1.57835 L 1.56955

[?]Trend Index[?]OB/OS Index
Slightly BullishNeutral
Data updated on Aug 02 at 07:15 (15-minute timeframe)

[ View GBP/USD Technical Studies ]


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