GBP/USD holding steady - Commerzbank

Karen Jones, analyst at Commerzbank, points out that GBP/USD pair held steady yesterday, and intraday Elliott wave counts have turned more negative and they make see the market consolidate further above 1.2444, the January low.

Key Quotes

“We then favour a deeper retracement and attention should revert to the resistance line at 1.2616, currently we would allow for near term gains towards the 55 day ma at 1.2715. Key resistance remains the 1.2772/84 mid February low and June high. Support at 1.2444/35 is regarded as the last defence for 1.2108, the 78.6% retracement of the move up from 2016.”

“A rise above the June high at 1.2784 would indicate that a bottom is being formed.”