In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s current upside should be corrective only.
“GBP/USD saw a decent rally higher, while this is still indicated to be corrective only, should resistance at 1.2335 be overcome then this would trigger scope for further gains to the 1.2500 vicinity”.
“We have a resistance line at 1.2947 and will consider that the market remains directly offered below the 1.3056 late September high”.
“Below 1.2090 would almost mean a continuation of the descent with the 1.1938/07 low again targeted en route to 1.1793 and 1.1491. Rallies should remain capped by the 1.2279 October 13 inside day high”.