GBP/USD: Upside remains corrective only – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, still favours further downside in Cable in light of the recent price action.

Key Quotes

“GBP/USD has not maintained the break of the 1.3515/04 January 2009 low and 2019 peak – it is not clear if this was a premature break or a false break, but intraday Elliott wave counts remain negative and for now we will favour the downside. Initial resistance is 1.3752, the 23rd September high and the 55-day ma at 1.3758 and the 1.3914 mid-September high.”

“Currently while capped by 1.3914 we will maintain a negative bias and allow for scope to the 200-week ma at 1.3161. The recent low is 1.3411.”