GBP/USD: Consolidation in store - Commerzbank

Karen Jones, analyst at Commerzbank, explains that the GBP/USD pair is consolidating at the moment, following the break through its downtrend recently after the market recently sold off to and recovered from a 5 month support line, today located at 1.2422.

Key Quotes

“We regard the slide to 1.2444 charted recently as the end of the down move and we look for gains to the 200 day ma at 1.3101. We note the 13 count on the 240 minute chart and would allow near term for further consolidation. Below 1.2444/25 targets the 78.6% retracement at 1.2109.”

“Only a rise above the July, September and October highs at 1.3258/1.3363 would put the June high at 1.3473 on the cards.”