GBP/USD: Still under pressure? - Commerzbank

According to Karen Jones, analyst at Commerzbank, suggests that the GBP/USD remains under pressure as it’s recent move to 1.2479/77 was not confirmed by the daily RSI but the rebound has failed to make much impression on the 1.2662 August low either.

Key Quotes

“While rallies remain capped by the 20 day ma at 1.2711 we will regard the market as vulnerable on the downside. Below 1.2477 targets the 78.6% retracement at 1.2109. Above the 20 day ma lies the 1.2840 current December high but while capped by the resistance line at 1.2933 it will remain offered.”

“Only a rise above the July, September and October highs at 1.3258/1.3363 would put the June high at 1.3473 on the cards.”