GBP/USD extends the rangebound – Commerzbank

According to Senior Technical Analyst at Commerzbank Axel Rudolph, Cable remains poised to extend its sideline theme for the time being.

Key Quotes

“GBP/USD continues to oscillate around the 1.2450 level while trading above the two month support line at 1.2363. We anticipate to see several days of consolidation above last week’s low at 1.2304. While it holds the 55 day ma at 1.2555 and the November 4 high at 1.2556 should be revisited. Further up sits the November high at 1.2672”.

“A drop below the 1.2304 level would put the 1.2090/85 October 11 and 25 lows on the map”.

“Failure at 1.2085 would mean a continuation of the descent and should trigger losses to the October low at 1.1938 (according to CQG). Below it lies the May 1985 low at 1.1855. We regard the recent peak at 1.2672 as the end of the corrective phase and look for further losses”.