Cable could extend its upside corrective to the 1.3500/1.3600 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
Key Quotes
“GBP/USD‘s recent new low was not confirmed by the daily RSI, and the market is correcting higher. The Elliott wave count is pointing to a corrective rebound to the 1.3500/1.3600 area, which is fairly tepid. Below 1.3200 will trigger losses to the 1.3040 October low. Initial resistance is the 20 day ma at 1.3406, which is currently holding”.
“The March low lies at 1.3712 and this should offer a tough near term barrier. Rallies are expected to remain capped by the 1.3767 55 day moving average and while below here the market will remain directly offered”.
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