Karen Jones, chief analyst at Commerzbank explained that GBP/USD is upside corrective near term having virtually reached target of the 1.4910/1.4813 long term Fibonacci retracement and 2013 low.
Key Quotes:
"There is a large divergence of the daily RSI on this move to a move to a new low and we would allow for a corrective rebound back towards the 1.5375 downtrend. Near term rallies are expected to find initial resistance at 1.5300, but key resistance is the downtrend at 1.5375, while capped here, our negative bias will remain entrenched."
"Above the downtrend, key resistance is the 1.5855 November 2013 low, however corrective rallies are expected to terminate ahead of here circa 1.5400/1.5685."
"The support zone down to 1.4813 is considered to be the major break down point longer term to 1.4290/30."
Key Quotes:
"There is a large divergence of the daily RSI on this move to a move to a new low and we would allow for a corrective rebound back towards the 1.5375 downtrend. Near term rallies are expected to find initial resistance at 1.5300, but key resistance is the downtrend at 1.5375, while capped here, our negative bias will remain entrenched."
"Above the downtrend, key resistance is the 1.5855 November 2013 low, however corrective rallies are expected to terminate ahead of here circa 1.5400/1.5685."
"The support zone down to 1.4813 is considered to be the major break down point longer term to 1.4290/30."
