Karen Jones, analyst at Commerzbank, suggests that the GBP/USD is likely to find initial resistance at the 1.2840 levels after it has bounced off the bottom of its 4 month trading range.
“While capped by the resistance line at 1.2994 it will remain offered. Support at 1.2662, the August low, has been tested and held 3 times now. Below 1.2662 would trigger further weakness to the 61.8% Fibonacci retracement of the 2016-2018 advance and the June 2017 low at 1.2593/89. Above 1.3002 lies the November 14 high at 1.3072. Further resistance comes in at the 1.3175 November high below which we will retain a longer term bearish bias.”
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