GBP/USD interim top in place? – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the likeliness that Cable could have carved a top in the 1.2770 area.

Key Quotes

“GBP/USD held steady yesterday, but is expected to struggle shortly – last week the market failed at the 1.2769 100 day ma and we believe has seen an interim top”.

“We look for the market to come under increasing downside pressure this week. We look for the market drop to the 1.2445 two month uptrend. This remains the break down point to the 1.2090/85 October 11 and 25 lows. Intraday rallies are likely to now struggle circa 1.2665. Initial support below the uptrend lies at 1.2302/1.2285”.

“Failure at 1.2085 would mean a continuation of the descent and should trigger losses to 1.1775 and then 1.1481 the recent spike low”.