GBP/USD still expected to fail – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, still sees the upside as corrective only.

Key Quotes

“GBP/USD charts across the daily and intraday time frames continue to indicate that this move higher is corrective only and the market should fail here. We note the 13 count on the 240 minute chart and this adds weight to this view. There is a support line at 1.2487 and this is being eroded - failure here will further under mine the chart”.

“Initial support is 1.2335, the 19th October high. Recent lows remain 1.2090/83. Failure here would mean a continuation of the descent and should trigger losses to the May 1985 low at 1.1855. Our intraday Elliott counts are suggesting a decline to 1.1630”.

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