GBP/USD still negative below 1.2547 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis, Cable should keep the negative stance below 1.2547.

Key Quotes

“GBP/USD is seeing a small rebound from support circa 1.2200. Recent attempts higher have so far been thwarted by the 55 day ma at 1.2411 however there is scope for a move to and challenge of the 1.2547 resistance line. While capped here focus should once again shift to support offered by the 1.2083 October 2016 low. A negative bias will remain entrenched while below here, this resistance is reinforced by the 100 day ma at 1.2638”.

“Below 1.2200, the near term target remains 1.2090/85, the October 11 and 25 lows. 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”.