GBP/USD outlook still negative – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s stance remains negative.

Key Quotes

“No change, the market has eroded the 55 and 200 day moving averages and focus is on initial support at 1.2250. Failure here will trigger losses to the 1.1988/80 recent low and the bottom of the 5 month range at 1.1935.Vewry near term we may just consolidate, we note the 13 count on the 60minuate chart and the TD support at 1.2239”.

“Initial resistance is 1.2583. Only above 1.2675 channel would allow for further strength to the 1.2776 December high. Between here and 1.2836 lies several Fibonacci retracements and major resistance and we suspect that it will struggle here”.