GBP/USD bounces could struggle in the 1.3260/90 band – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted rebounds are now likely in Cable, although they could likely struggle around 1.3260/90.

Key Quotes

“GBP/USD has continued to collapse lower it has even eroded the 1.3049 mid May high (but has not closed below here). The 55 week ma at 1.3044 is also found here. We would allow for an intraday rebound, but intraday rallies are likely to struggle 1.3260/90”.

“It targets the 1.2915 2016-2017 uptrend. This is the break down point to the 1.2830 38.2% retracement and the 1.2575 50% retracement. The market has recently failed at the 1.3557 2014-2017 downtrend and is viewed negatively”.

“A close above 1.3670 will open the way to the 1.3836 February 2016 low and the 50% retracement at 1.4341”.