GBP/USD has eased back towards uptrend – Commerzbank

Karen Jones, analyst at Commerzbank, points out that the GBP/USD pair is consolidating very near term and we have seen a retracement towards 1.3065/00 as expected (intraday Elliott wave count) and the near term uptrend at 1.3006.

Key Quotes

“While underpinned by the near term uptrend, it stays bid and we look for gains to the 55 week ma at 1.3297. Here we also find the July, September and October highs at 1.3258/1.3363. While we would allow for this to hold the initial test, there is scope for the June high at 1.3473 and the 200 week ma at 1.3650 slightly longer term.”

“Some caution is warranted as we note the daily RSI is breaking lower and this does reflect a loss of upside momentum.”