GBP/USD: Profit-taking ahead of UK election? – Commerzbank
|In the view of Karen Jones, analyst at Commerzbank, the downside looks more compelling in the GBP/USD pair amid some profit-taking ahead of the UK election.
Key Quotes:
“GBP/USD has reached the 50% retracement of the move down from 2018 at 1.3167 and the 1.3187 May high and the January high at 1.3217 - this is tough resistance and we look for the market to see initial fail here.
We note the daily RSI has not confirmed the new high and we note the TD perfected set up on the daily chart. Both imply some profit taking. Minor support is offered by 1.3013 October high and the 20-day ma at 1.2981 and this guards the 1.2768 8th November low.
Failure at 1.2768 would probably see a slide to the 200-day ma at 1.2696. This guards the 1.2582 September high. Below 1.2582 lies the 1.2593 uptrend line. It guards 1.2196/94.
A close above 1.3187/1.3217 will open the way to the 1.3382 the 2019 high and potentially the 61.8% retracement at 1.3450.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.