GBP/USD negative near-term – Commerzbank

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

Key Quotes

“GBP/USD remains under pressure following the political chaos that has ensued following the UK general election last week. The market broke down from the 1.2775- 1.3060 range and this is now acting as formidable nearby resistance. The intraday Elliott wave count is suggesting that we will see failure here ahead of further losses. We look for losses to extend to the 200 day ma at 1.2571 and then the 1.2468/61.8% retracement. There is potential for the 1.2366 the 10th April low”.

“The rally will find initial resistance offered by the range above 1.2775, the 20 day ma lies at 1.2889. But only above 1.3060 would target the 1.3446 September 2016 high”.