GBP/USD: Downside momentum – Commerzbank

According to Karen Jones, analyst at Commerzbank, GBP/USD has failed on the initial test of its 3-month down channel at 1.2272, and look for this to hold the initial test.

Key Quotes

“Dips lower will find minor support at 1.2108 ahead of the 1.2015 recent low and TD support at 1.1988. Below 1.1988 lies the 1.1491 3 rd October low (according to CQG). Only a close above the downtrend would introduce scope to the 55 day ma at 1.2399 and the June high at 1.2784.”

“Only a rise above the June high at 1.2784 would indicate that a bottom is being formed (not favoured).”