Karen Jones, analyst at Commerzbank, means that the GBP/USD pair is beginning to erode the 200 day ma and the each day Elliott wave depend is suggesting a deeper retracement to 1.2940.
“Excessive warning is warranted as we observe the each day RSI is breaking decrease and this does mirror a lack of upside momentum. Beneath 1.2940 would enable for slippage to 1.2802 the 55 day ma and doubtlessly 1.2669/62, the August low. Please observe that the intraday Elliott wave counts stay optimistic and for now we’ll stand apart.”
“Overhead lies the 55 week ma at 1.3280. Right here we additionally discover the July, September and October highs at 1.3258/1.3363. We suspect that this can maintain and provoke failure. Above right here would goal the June excessive at 1.3473 and the 200 week ma at 1.3641 (not favoured).”