GBP/USD negative below 1.2407/33 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s stance remains negative while below the 1.2407/33 band.

Key Quotes

“GBP/USD the rebound off to the 61.8% Fibo at 1.1982 has so far been capped by the 55 day ma at 1.2407. This together with the 1.2433 resistance line should halt the rally. While capped here, a negative bias will remain entrenched, this resistance is reinforced by the 100 day ma at 1.2536”.

“We suspect that prices will need to go sub 1.2200/1.2165 however to alleviate immediate upside pressure. We note that the intraday Elliott count is positive and we partially covered our shorts yesterday”.

“Support at 1.1980 guards 1.1775 and then 1.1481 the recent spike low”.