Flash: GBP/USD spike high? RSI has not confirmed the recent high - Commerzbank

FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that GBP/USD has no change, the upmove is overstretched and the daily RSI has not confirmed the recent 1.6822 high - as a consequence the market is likely to correct lower near term or at least attempt to consolidate some of its recent gains.

Key Quotes

“While the retracement holds over 1.6630/00 (38.2% retracement of the move seen so far in February) an immediate upside bias will remain.”

“While we acknowledge that the Elliott wave counts on the daily, weekly and monthly charts indicate that this is the end phase of the move we remain unable to rule out an extension to the 1.7041 2009 peak (although this is not our favoured scenario).”

“The market will need to break back below 1.6550 in order to re-focus on the 1.6259/29 support which remains key (September high and the 23.6% retracement of the move up from July 2013).”