GBP/USD could slip back to 1.2826 – Commerzbank

Cable risks a test of 1.2816, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“Sterling continues to struggle with 1.3060 the 29th September high. The recent new high has not been confirmed by the RSI and we note the 13 count on the daily chart. The market is easing back to the short term uptrend at 1.2826. We would allow for this to hold the initial test, but acknowledge that the risk has increased for a break below here to 1.2776 the 6 th December high and potentially 1.2595 the 200 day ma”.

“While above 1.2776 and upside bias remains for scope to the 1.3443 September 2017 high”.

“The market needs to go back below the April 21 low at 1.2760/58 to negate upside pressure completely. This would introduce scope to the 200 day ma at 1.2595”.