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27 Jan 2014
Flash: GBP/USD key day reversal - Commerzbank
FXstreet.com (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that for GBP/USD, as suspected, upside probes proved short lived and the market sold off aggressively.
Key Quotes
“Fridays key day reversal at key resistance (1.6635 200 month ma and long term pivot line at 1.6657) suggests that the market may well have topped. However we will need to see a close below the 1.6375 uptrend to confirm the market has failed (and preferably below the 1.6259 September high).
"Please note the weekly RSI has diverged and we have a TD perfected set up on the weekly, this in conjunction with a key day reversal suggests we have also topped. This should then be enough to signal losses to the 1.5855 November low."
Key Quotes
“Fridays key day reversal at key resistance (1.6635 200 month ma and long term pivot line at 1.6657) suggests that the market may well have topped. However we will need to see a close below the 1.6375 uptrend to confirm the market has failed (and preferably below the 1.6259 September high).
"Please note the weekly RSI has diverged and we have a TD perfected set up on the weekly, this in conjunction with a key day reversal suggests we have also topped. This should then be enough to signal losses to the 1.5855 November low."