GBP/USD neutral to negative near term – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted Cable should to drop below 1.2250 to mitigate upside pressure.

Key Quotes

“Last week the market bounced off its 55 and 100 day moving averages at 1.2411/05, but failed just ahead of the 1.2583 8 th February high. This guards the top of the channel at 1.2681. We suspect that prices will need to go sub 1.2250 in order to alleviate immediate upside pressure and trigger losses to the 1.1988/80 recent low. Immediate support is the 1.2347 February low”.

“Only above 1.2681 would allow for further strength to the 1.2776 December high. Between here and 1.2836 lies several Fibonacci retracements and major resistance and we suspect that it will struggle here”.