GBP/USD: Move lower was likely - Commerzbank

According to Karen Jones, analyst at Commerzbank, GBP/USD has sold off to and is holding at the 38.2% retracement at 1.2922, this looks exposed as the weakness in daily RSI gave an early warning signal that this move lower was likely.

Key Quotes

“There is potential for slippage to 1.2806 the 55 day ma and even 1.2669/62, the August low. Intraday rallies will now find resistance at 1.3030, the 200 day ma and will stay directly offered below here.”

“Overhead lies the 55 week ma at 1.3280. Here we also find the July, September and October highs at 1.3258/1.3363. We suspect that this will hold and provoke failure. Above here would target the June high at 1.3473 and the 200 week ma at 1.3641 (not favoured).”