GBP/USD: Upside corrective short term – Commerzbank

According to Karen Jones, analyst at Commerzbank, GBP/USD is seeing a corrective rebound while the recent move to 1.2479/77 was not confirmed by the daily or weekly RSI.

Key Quotes

“We would allow for recovery to the 2018-2019 resistance line at 1.2843, there is potential for 1.2925, the 23.6% retracement of the entire sell off seen throughout 2018. Dips lower will find initial support at 1.2616 the low 27th December. This guards the 1.2477 recent low. Below 1.2477 targets the 78.6% retracement at 1.2109.”

“Only a rise above the July, September and October highs at 1.3258/1.3363 would put the June high at 1.3473 on the cards.”