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8 Apr 2013
Forex Flash: GBP/USD potential climb to 1.5420 – Commerzbank
FXstreet.com (Barcelona) - The sterling is extending its correction lower from session highs above 1.5340 overnight, although buying interest around 1.5300 lifted the cross to the current area of 1.5315/20. The broader context however remains tilted to the risk-off tone so far.
Karen Jones, Head of FICC Technical Analyst at Commerzbank, suggests the short-term corrective upside should prevail as long as the market navigates above 1.5028. “The market has encountered its 55 day ma at 1.5342 and the 38.2% retracement of the move seen this year lies at 1.5420 – ideally this will hold and provoke failure. We note the Elliott wave count is suggesting this scenario currently”.
Karen Jones, Head of FICC Technical Analyst at Commerzbank, suggests the short-term corrective upside should prevail as long as the market navigates above 1.5028. “The market has encountered its 55 day ma at 1.5342 and the 38.2% retracement of the move seen this year lies at 1.5420 – ideally this will hold and provoke failure. We note the Elliott wave count is suggesting this scenario currently”.