GBP/USD consolidative above 1.2304 near term – Commerzbank

Axel Rudolph, Senior Technical Analyst at Commerzbank, sees Cable extending its sideline theme above 1.2304 in the short-term.

Key Quotes

“GBP/USD continues to oscillate around the 1.2450 level while trading above the two month support line at 1.2351. This we still expect to hold. We anticipate to see several days of consolidation above last week’s low at 1.2304. While it holds the November 4 high at 1.2556 could be revisited and perhaps the 55 day moving average at 1.2570 as well”.

“A drop below the 1.2304 level would put the 1.2090/85 October 11 and 25 lows on the map”.

“Failure at 1.2085 would mean a continuation of the descent and should trigger losses to the October low at 1.1938 (according to CQG). Below it lies the May 1985 low at 1.1855. We regard the recent peak at 1.2672 as the end of the corrective phase and look for further losses”.