Rallies in GBP/USD seen struggling around 1.2320 – Commerzbank

In opinion of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, occasional rallies in Cacble could falter in the 1.2320 region.

Key Quotes

“GBP/USD last week sold off to the base of its short term channel at 1.2022 and the January 2017 low at 1.1988. Last weeks low was 1.2080, but given the 13 count on the daily chart we would allow for this to hold the initial test and prompt a near term rebound. Below here lies the 1.1491 3rd October low (according to CQG). Rallies, if seen, should struggle circa 1.2320”.

“It stays negative while contained by 2 month downtrend at 1.2459 today. Above the downtrend this would introduce scope to the 55 day ma at 1.2555 and the June high at 1.2784”.