GBP/USD: Slightly negative bias - Commerzbank

Karen Jones, analyst at Commerzbank, points out that GBP/USD pair continues to hold below the 1.2763/72 resistance (the 7th June high and February low) and they maintain a slightly negative bias.

Key Quotes

“The Elliott wave count on the daily chart is negative implying that the market is likely to slide back towards the 1.2559/1.2506 recent lows. Below 1.2506 would target the 1.2444 December 2018 low. This is the last defence for 1.2108, the 78.6% retracement of the move up from 2016.”

“The market will have to overcome last weeks high at 1.2784 on a closing basis in order to generate some further upside interest. This will target the 200 day ma at 1.2913, but we are looking for this to then cap the topside.”