GBP/USD negative below 1.2516 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted Cable’s stance remains negative while below 1.2516.

Key Quotes

“GBP/USD has sold off sharply having failed at the 55 day ma at 1.2414 – it has already virtually reached its initial support at 1.2090/85, the October 11 and 25 lows. We would allow for this to hold the initial test. Failure at 1.2085 would mean a continuation of the descent and should trigger losses to 1.1775 and then 1.1481 the recent spike low”.

“Above 1.2433 we are likely to see a challenge of the 1.2516 resistance line. While capped here a negative bias will remain entrenched while below here, this resistance is reinforced by the 100 day ma at 1.2611”.