GBP/USD: Well placed to challenge the 9 month downtrend - Commerzbank

Karen Jones, analyst at Commerzbank, suggests that the GBP/USD pair is well placed to challenge the 9 month downtrend at 1.2805 after the market last week recovered from a 5 month support line, today located at 1.2433.

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 1.2805 to confirm upside scope (favoured). This would target initially the 200 day ma at 1.3133. 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.”