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Forex Flash: GBP/USD with conflicting signals but likely to resume down move - Commerzbank

FXstreet.com (Barcelona) - June 2012 low, at 1.5269, remains as a strong resistance and the GBP/USD failed there: “It is likely that the up move has terminated here, but the intraday charts are giving conflicting signals and the Elliott wave count suggests that we should allow for a 1.5350/1.5475 move prior to failure. This leaves unable to rule out the possibility of one more leg higher before the longer term down move resumes. This is expected to provoke failure”, wrote analyst Karen Jones, expecting the GBP/USD to again drift lower towards the psychological 1.5000 region, then the 1.4832 March low. “Longer term we look for losses to 1.4229, the 2010 low. Minor support can be seen around the 1.5176 March 15 high”, added Commerzbank analyst.

Forex: GBP/USD bounces back on US data

After finding resistance at 1.5170 area, the GBP/USD fell to 1.5112 low after the release of UK Index of Services that fell -0.2% in January, as expected, following a -0.1% drop in the previous month. Also from the UK was the BOE FPC statement, recommending regular stress testing for UK banks from 2014. Then, support at 1.5120 area pulled the market to the upside and is already trading above 1.5150 after the release of US data.
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