GBP/USD outlook appears neutral – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s stance remains on the neutral stance for the time being.

Key Quotes

“GBP/USD has stabilised ahead of its near term uptrend, currently at 1.2959. Last week we saw the market perform a key day reversal (only just) and the new high was accompanied by a divergence of the daily and weekly RSI. However we have seen no follow through on the downside and for now we are neutral. We would allow for a dip back to the 1.2959 near term uptrend (virtually already seen). It will need to close below here in order to negate upside pressure and retarget 1.2775/50. Above 1.3126 will target the 1.3446/60 September 2016 high. Key support remains 1.2775/50”.

“The market should now find decent support circa 1.2775/50. Below 1.2750 there is scope for an extension to its 200 day ma and uptrend at 1.2585/1.2611”.