GBP/USD medium term up move ended at 1.3267 – Commerzbank

Cable’s medium term upside could have ended near 1.3270, suggested Axel Rudolph, Senior Technical Analyst at Commerzbank.

Key Quotes

“Last week GBP/USD probed the 1.2775/59 support area before bouncing off it as expected and reaching the 55 day moving average at 1.2929 this morning. This we expect to cap today”.

“We are still of the opinion that the 1.3267 current August high was the end of a medium term up move. While trading below the next lower 1.3031/49 May and August 11 highs overall downside pressure will be maintained. Further resistance sits at the 1.3126 July 18 high”.

“The 1.2775/59 support zone consists of the December 2016, late April and late May lows. Below it sit the 50% retracement and 200 day moving average at 1.2688/56”.