GBP/USD still points to some recovery – Commerzbank

Despite Friday’s sell off, Cable could still attempt a small recovery in the near term, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“The flash UK purchasing managers indices for July, out on Friday indicated a big loss of post-referendum economic momentum and Sterling came under pressure”.

“GBP/USD is attempting to stabilise above 1.30 and the market is attempting to erode the 20 day ma at 1.3168. This has neutralised the immediate outlook but the intraday Elliott wave continues to suggest some scope for near term recovery”.

“Above here we have 1.3534, the 29th June high and we remain unable to rule out a rally to 1.3638, the 38.2% retracement and potentially 1.4158, the 61.8% retracement of the recent sell off”.