In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable has now shifted its focus on the 1.3058/22 band.
“GBP/USD has struggled to clear the 20 and 55 day moving average at 1.3180/1.3211 and is back under pressure with attention focussed on the 1.3058/22 support line and 2016-2017 uptrend. It represents the break down point to 1.2830/1.2774, the 38.2% retracement and August low, and the 1.2575 50% retracement”.
“The recent October high and the 50% retracement at 1.3338/43 continue to act as a short term ceiling for the market. Near term we are unable to rule out a deeper retracement to 1.3250 ahead of further failure”.
“Above 1.3343 (50% retracement) would trigger a deeper recovery to potentially 1.3417/1.3515, the 61.8% and the 2014-2017 downtrend”.
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