Cable’s outlook remains negative while below 1.3712, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
Key Quotes
“GBP/USD has seen initial rejection at its 20 day moving average at 1.3289. It is possible that this is the end of the correction – but we would be surprised, as we also the TD perfected set up on the weekly chart and the divergence of the daily RSI. The Elliott wave count is suggesting a correction into the 1.3440/1.3540 band still and there is scope for the 1.3594 200 day ma. A negative bias will remain entrenched while capped by the 1.3712 March low”.
“The market had been approaching strong support offered by the 1.3040 October 2017 low, and the 50% retracement at 1.2918 and looks to have reversed just ahead of here. Below 1.2918 would be treated as the break down point to 1.2580, the 61.8% retracement from 2016″.
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