GBP/USD: Well placed to tackle downtrend - Commerzbank

Karen Jones, analyst at Commerzbank, explains that the GBP/USD last week sold off to and recovered from a 5 month support line, today located at 1.2438.

Key Quotes

“We regard the slide to 1.2444 charted last week as the end of the down move. The market will need to overcome the 2018-2019 resistance line at 1.2821 to confirm (favoured). This would target initially the 200 day ma at 1.3146. Below 1.2444/38 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.”