Thursday, July 14, 2011

Commerzbank: Negative Middle-Term Outlook on GBP/USD

British pound went up from Tuesday's minimum at $1.5775 almost reaching $1.6200 today before easing down to $1.6125.

Technical analysts at Commerzbank note that there’s a bunch of resistances in the $1.6211/62 area containing 38.2% Fibonacci retracement of the advance from December to April, June 22 maximum and the channel resistance line.

The specialists claim that the outlook for the pair GBP/USD will remain bearish in the middle term as long as it trades below $1.6262. In their view, sterling will drop to $1.5487 (50% retracement of the uptrend from 2010 to 2011) and $1.5347 (December minimum).
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