FX : Longer term upmove, losing momentum - Commerzbank
FXstreet.com (Barcelona) - The Pound has remained moving in a range from 1.6300 to 1.6600 during the whole week, trading at the moment at levels around 1.6500, showing, according to Karen Jones, technical analyst at Commerzbank, that the upside move from March lows, is losing momentum.
Jones ponts out to bearish divergence on the weekly RSI after retreat from 1.7050: "from a medium term perspective that the recent spike up to 1.7050 was accompanied by a bearish divergence of the weekly RSI (looks like triple top), which implies that the longer term upmove is losing momentum."
Furthermore, Jones observes that a weekly close below 1.6200 will confirm that market has topped: "A close below 1.6200, is needed to confirm that the market has topped targeting the June low at 1.5803 and then the 38.2% retracement of the entire move higher this year – this is located at 1.5695/90."
