GBP/USD neutral to negative bias persists – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, keeps the neutral/negative stance on Cable.

Key Quotes

“GBP/USD continues to consolidate at its 55 day ma at 1.2426, we maintain a negative bias but patience is needed. A close below here will introduce potential to the 1.2253 the 18th January low. The intraday Elliott counts have turned more positive and caution is needed”.

“We suspect that prices will need to go sub 1.2250 in order to alleviate immediate upside pressure and trigger losses to the 1.1988/80 recent low. Immediate support is the 1.2347 February low”.

“Last weeks high at 1.2583 guards the top of the channel at 1.2692. Only above 1.2692 would allow for further strength to the 1.2776 December high. Between here and 1.2836 lies several Fibonacci retracements and major resistance and we suspect that it will struggle here”.