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3 Oct 2013
Flash: Reversal in GBP/USD could be quite significant - RBS
FXstreet.com (Barcelona) - GBP/USD continues its resilient appreciation, yet Dmytro Bondar, RBS Technical Analyst, believes the days of Pound gains are numbered.
Key Quotes
"The recent price action has formed an advance block candlestick pattern followed by a shooting star just below 1.6277, being a key 161.8% Fibonacci projection from the July-August impulse wave."
"At the same time, momentum oscillators, particularly slow stochastic with 20/5/5/3 parameters formed a bearish divergence with the price action, confirming the likelihood of reversal."
"If so, the move can be quite significant, as the long-term chart studies suggest Cable could go to the levels below 1.50."
"However, the first short-term support levels will be expected at 1.5911, 1.5718 and 1.5505. Caveat would be a sustained close above 1.6409."
Key Quotes
"The recent price action has formed an advance block candlestick pattern followed by a shooting star just below 1.6277, being a key 161.8% Fibonacci projection from the July-August impulse wave."
"At the same time, momentum oscillators, particularly slow stochastic with 20/5/5/3 parameters formed a bearish divergence with the price action, confirming the likelihood of reversal."
"If so, the move can be quite significant, as the long-term chart studies suggest Cable could go to the levels below 1.50."
"However, the first short-term support levels will be expected at 1.5911, 1.5718 and 1.5505. Caveat would be a sustained close above 1.6409."