GBP/USD upside still corrective – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the recent pair’s upside is viewed as corrective only for the time bein.

Kew Quotes

“GBP/USD took out the 5 month downtrend at 1.2341 last week (following the ruling that the UK government must hold a vote in Parliament before triggering article 50). The market has reached the 1.2500 psychological resistance and it is interesting to note that all the daily and intraday charts continue to indicate that this move higher is corrective only and should fail here. Above 1.2555, there is scope for a test of the 1.2798/1.2840 6 th July low and 38.2% retracement of the entire move down from June”.

“Initial support is 1.2335, the 19th October high. Recent lows remain 1.2090/83. Failure here would mean a continuation of the descent and should trigger losses to the May 1985 low at 1.1855. Our intraday Elliott counts are suggesting a decline to 1.1630”.