GBP/USD continues to consolidate - Commerzbank

Karen Jones, analyst at Commerzbank, explains that the GBP/USD pair continues to consolidate very near term and remains underpinned by the near term uptrend at 1.3035.

Key Quotes

“While above here, it stays bid and we look for gains to the 55 week ma at 1.3297. Here we also find the July, September and October highs at 1.3258/1.3363. While we would allow for this to hold the initial test, there is scope for the June high at 1.3473 and the 200 week ma at 1.3650 slightly longer term. Some caution is warranted as we note the daily RSI is breaking lower and this does reflect a loss of upside momentum.”

“Below the uptrend, dips will find support at the 55 day ma at 1.2786 and 1.2669/62, the August low.”