GBP/USD: near term outlook stays more negative – Commerzbank

Cable’s stance appears deteriorated in the short term, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“Sterling is struggling to break above the 55 week ma at 1.2966, and the 1.30 psychological resistance, where it has stalled. The recent high was accompanied by a divergence of the daily RSI but the market needs to go back below the April 21 low at 1.2760 to negate upside pressure. This would introduce scope to the 200 day ma at 1.2598”.

“A close above 1.30 would introduce scope to the 1.3443 September 2016 high”.