GBP/USD downside pressure persists below 1.3031/49 – Commerzbank

Senior Technical Analyst at Commerzbank Axel Rudolph suggested Cable should maintain the downside pressure as long as it trades below the 1.3031/49 band.

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 1.2934. Next up sits minor resistance at the 1.2979 June high”.

“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 1.2688/59”.