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15 Jul 2013
GBP/USD testing 1.5100
FXstreet.com (London) - GBP/USD is testing the 1.5100 handle after the release of disappointing US Retail Sales.
US Retail sales printed 0.4% vrs a consensus of 0.8% and slightly lower than previous of 0.5%. The pair jumped up from the base of 1.5050 by 50 pips to pierce the handle.
Karen Jones, Chief analyst at Commerzbank views GBP/USD’s rebound from support at 1.4854/32 as corrective only (the 61.8% retracement of the 2009 move higher and the March low). “The Elliot wave count is implying that this is corrective only and suggests the rally will fail circa 1.5220 ahead of the more important 1.5305 level (50% retracement)”. She said provided it does so, attention should revert to the 1.4854/32 support. However, above 1.5305, she feels, neutralises the immediate outlook for recovery to the 1.5530/1.5603 band, the 78.6% retracement and 200 day ma.
US Retail sales printed 0.4% vrs a consensus of 0.8% and slightly lower than previous of 0.5%. The pair jumped up from the base of 1.5050 by 50 pips to pierce the handle.
Karen Jones, Chief analyst at Commerzbank views GBP/USD’s rebound from support at 1.4854/32 as corrective only (the 61.8% retracement of the 2009 move higher and the March low). “The Elliot wave count is implying that this is corrective only and suggests the rally will fail circa 1.5220 ahead of the more important 1.5305 level (50% retracement)”. She said provided it does so, attention should revert to the 1.4854/32 support. However, above 1.5305, she feels, neutralises the immediate outlook for recovery to the 1.5530/1.5603 band, the 78.6% retracement and 200 day ma.