GBP/USD upside still corrective only – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s upside remains corrective only.

Key Quotes

“GBP/USD has rallied overnight but not taken out 1.2558 – so the charts continue to indicate that this move higher is corrective only and the market should fail here – however after such a directional move higher a break above this level is an increased risk”.

“Initial support is 1.2335, the 19th October high. Recent lows remain 1.2090/83. Failure here would mean a continuation of the descent and should trigger losses to the May 1985 low at 1.1855. Our intraday Elliott counts are suggesting a decline to 1.1630”.

“Above 1.2558, there is scope for a test of the 1.2798/1.2840 6 th July low and 38.2% retracement of the entire move down from June”.

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