Back
27 Feb 2015
GBP/USD: Bears need a break of 20 dma at 1.5333
FXStreet (Guatemala) - GBP/USD is currently trading at 1.5433 with a high of 1.5460 and a low of 1.538.
GBP/USD is closing the session towards the mid point of the 1.54 handle, unable to make further advances on a US shift that came with decent US looking data over a number of mediums of economic activity. GDP was better than had been anticipated while Michigan consumer sentiment also came in positive. Besides the US dat, the eurozone numbers boosted the euro and sterling was under-performing in the same light also.
Technically, Karen Jones, chief analyst at Commerzbank, explained that GBP/USD has seen interesting price action, noting that yesterday was a key day reversal and this calls into question the recent break higher and in fact suggests that the market has topped at 1.5550. "The market has not traded above its cloud since July 2014 and we suspect that this has been a false break. The Elliott wave count on the daily chart is suggesting this was the end of the short term correction higher however a break below the 20 day ma at 1.5333 will still be needed to alleviate upside pressure. This will retarget 1.5197 en route to 1.4953 the January low."
GBP/USD is closing the session towards the mid point of the 1.54 handle, unable to make further advances on a US shift that came with decent US looking data over a number of mediums of economic activity. GDP was better than had been anticipated while Michigan consumer sentiment also came in positive. Besides the US dat, the eurozone numbers boosted the euro and sterling was under-performing in the same light also.
Technically, Karen Jones, chief analyst at Commerzbank, explained that GBP/USD has seen interesting price action, noting that yesterday was a key day reversal and this calls into question the recent break higher and in fact suggests that the market has topped at 1.5550. "The market has not traded above its cloud since July 2014 and we suspect that this has been a false break. The Elliott wave count on the daily chart is suggesting this was the end of the short term correction higher however a break below the 20 day ma at 1.5333 will still be needed to alleviate upside pressure. This will retarget 1.5197 en route to 1.4953 the January low."