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8 Jan 2015
GBP/USD breaks the monthly support trend-line –UOB
FXStreet (Barcelona) - Analysts at UOB believe the break of the support trend-line could signal the start of a fresh long-term bearish phase for GBP/USD, with the next support seen at the 2013 low at 1.4814.
Key Quotes
“The break of the monthly trend-line connecting 1.3500 (low in Jan 2009) and 1.4814 (low in Jul 2013) is a significant development.”
“The whole move from 1.3500 to 1.7192 appears to be part of a protracted consolidation phase and the break of the support trend-line could signal the start of a fresh long-term bearish phase.”
“The next support is at the 2013 low of 1.4814 followed by the 2010 low of 1.4228.”
“While the key long-term resistance is at 1.6180, last Friday’s high of 1.5590 is already very strong resistance and as long this level is not taken out on a monthly close basis (note that since the 1.7192 high, each successive monthly high has been lower than the previous month), the outlook for GBP appears bleak going into 2015.”
Key Quotes
“The break of the monthly trend-line connecting 1.3500 (low in Jan 2009) and 1.4814 (low in Jul 2013) is a significant development.”
“The whole move from 1.3500 to 1.7192 appears to be part of a protracted consolidation phase and the break of the support trend-line could signal the start of a fresh long-term bearish phase.”
“The next support is at the 2013 low of 1.4814 followed by the 2010 low of 1.4228.”
“While the key long-term resistance is at 1.6180, last Friday’s high of 1.5590 is already very strong resistance and as long this level is not taken out on a monthly close basis (note that since the 1.7192 high, each successive monthly high has been lower than the previous month), the outlook for GBP appears bleak going into 2015.”