GBP/USD stance is now neutral to negative – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s outlook now stays neutral to negative.

Key Quotes

“Tuesdays price action constituted a key day reversal (only just) and we note that the new high was accompanied by a divergence of the daily and weekly RSI. We are starting to think that we have seen a false break higher and would allow for a dip back to the 1.2900 near term uptrend. It will need to close below here in order to negate upside pressure and retarget 1.2775/50. Above 1.3126 will target the 1.3446/60 September 2016 high. Key support remains 1.2775/50”.

“The market should now find decent support circa 1.2775/50. Below 1.2750 there is scope for an extension to its 200 day ma and uptrend at 1.2585/1.2611”.