Karen Jones, Analyst at Commerzbank, suggests that the GBP/USD is sitting near the bottom of its 4 month trading range and will find initial resistance at the 20 day ma at 1.2813 and the 55 day ma at 1.2953.
“While capped by the resistance line at 1.3002 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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