GBP/USD upside pressure alleviated below 1.2250 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s downside pressure should be mitigated below 1.2250.

Key Quotes

“The market continues to consolidate around its 55 and 100 day moving averages at 1.2415/07, we maintain a negative bias but patience is needed. A close below here will introduce potential to the 1.2253 the 18th January low. The intraday Elliott counts have finally turned more negative and we look for some weakness this week”.

“We suspect that prices will need to go sub 1.2250 in order to alleviate immediate upside pressure and trigger losses to the 1.1988/80 recent low. Immediate support is the 1.2347 February low”.