GBP/USD: Deeper retracement - Commerzbank

Karen Jones, analyst at Commerzbank, explains that the GBP/USD has sold off to and reversed from the January low at 1.2444, given the divergence of the daily RSI, they would allow for a deeper retracement.

Key Quotes

“Minor resistance comes in at the 1.2559 May low and the resistance line at 1.2650. Key resistance remains the 1.2772/84 mid-February low and June high. Support at 1.2444/35 is regarded as the last defence for 1.2108, the 78.6% retracement of the move up from 2016.”

“A rise above the June high at 1.2784 would indicate that a bottom is being formed.”