GBP/USD expected to recover from 1.2844 – Commerzbank

In light of the recent sell off, Cable could now see some recovery, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD is seeing an emphatic rejection from the 55 day ma at 1.3040. It has already sold off to the 20 day ma at 1.2844 and should ideally recover from here. It increasingly looks to have based from a slightly longer term perspective at 1.2662. Above the 55 day ma we look for a challenge of the 1.3173 July 30 high and the 1.3363 9 th July high. Minor resistance below this level comes in at the 1.3102 late June lows. A move above the 1.3363 July high would imply a deeper corrective phase to the 1.3473/1.3547 June high and 200 day moving average”.

“Intraday the cross stays bid above 1.2795. Below 1.2795 will imply a retest of the 1.2662 August low”.