Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the 1.2957 level should now hold the initial test in light of the ongoing recovery in Cable.
Key Quotes
“GBP/USD is correcting higher and has reached the 55 day ma, this together with the July low at 1.2957 should hold the initial test. Failure here will signal further losses to the June 2017 low at 1.2590. The intraday Elliott wave counts are conflicting, a move above 1.2957 would allow for a challenge of the 1.3173 July 30 high. Minor resistance below this level comes in at the 1.3049 and 1.3102 late June lows”.
“A move above the 1.3363 July high would imply a deeper corrective phase to the 1.3473/1.3559 June high and 200 day moving average”.
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