GBP/USD rally expected to stall around 1.2414/1.2453 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the recent rally in Cable should find strong resistance in the 1.2414/53 band.

Key Quotes

“GBP/USD has seen a strong reversal off to the 61.8% Fibo at 1.1982 and we have seen the market erode its near term downtrend. The rally is probing the 55 day ma at 1.2414 – and this together with the 1.2453 resistance line should halt the rally. While capped here, a negative bias will remain entrenched, this resistance is reinforced by the 100 day ma at 1.2556. We suspect that prices will need to go sub 1.2200 to alleviate immediate upside pressure”.

“Support at 1.1980 guards 1.1775 and then 1.1481 the recent spike low”.