GBP/USD: Recovery? - Commerzbank

Karen Jones, analyst at Commerzbank, suggests that for the GBP/USD pair, they are unable rule out the idea of recovery even after it has eroded the 3 month uptrend at 1.3065 but continues to hold the 200 day ma at 1.2980.

Key Quotes

“It should be noted that downside risks are growing and intraday rallies are likely to struggle 1.3165/75. The market recently challenged the 1.3363 July 2018 high, reaching 1.3382 before failing. Provided that dips lower are contained by the 200 day ma, our overall target remains the 1.3563 200 week ma. Below the 200 day ma lies the double Fibo retracement at 1.2900/1.2895. This guards the recent low at 1.2772.”

“Below 1.2772 we would allow for losses to the 1.2669/62 15th January low and August low and possibly the 1.2609/78.6% retracement.”