GBP/USD: Negative bias – Commerzbank

According to Karen Jones, analyst at Commerzbank, GBP/USD is attempting to stabilise very near term, but remains contained by 2 month downtrend at 1.2526 today.

Key Quotes

“This maintains an overall neutral to negative bias very near term and we would allow for a retest of the 1.2382 recent low. This may again hold as there is a distinct lack of downside momentum. Below 1.2366 (April 2017 low) we have very little support until the 1.2108, the 78.6% retracement of the entire move up from the 2016 low.”

“What is interesting is that we have a 13 count on the weekly chart, however there remains scope for a further sell off - TD support lies at 1.2184. Above the downtrend this would introduce scope top the 55 day ma at 1.2628 and the June high at 1.2784.”

“A rise above the June high at 1.2784 would indicate that a bottom is being formed (not favoured).”