GBP/USD negative near term – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s outlook remains bearish while below 1.2850.

Key Quotes

“GBP/USD is negative very near term. No change, despite the rebound last week the market continues to struggle at its 55 day ma at 1.2806 and while capped by its 20 day ma at 1.2850 will maintain a bearish bias. Nearby support remains 1.2642/36, which has now held the downside 3 times. We remain unable to rule out a brief extended rally towards 1.2800/40 ish. Provided that the rally remains capped by the 20 day ma at 1.2850 the market will remain vulnerable on the downside”.

“The previous range 1.2775-1.3060 should now act as formidable nearby resistance. We look for losses to extend to the 200 day ma at 1.2566 and then the 1.2468/61.8% retracement. There is potential for the 1.2366 the 10th April low”.