GBP/USD could grind lower to 1.12885 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted Cable could retreat to the 1.2880 region.

Key Quotes

“Yesterdays price action constituted a key day reversal (only just) and we note that the new high was accompanied by a divergence of the daily RS and weekly RSII. We are starting to think that we have seen a false break higher and would allow for a dip back to the 1.2885 near term uptrend. It will need to close below here in order to negate upside pressure and retarget 1.2775/50. Above 1.3126 will target the 1.3446/60 September 2016 high. Key support remains 1.2775/50”.

“The market should now find decent support circa 1.2775/50. Below 1.2750 there is scope for an extension to its 200 day ma and uptrend at 1.2585/1.2611”.