Karen Jones, analyst at Commerzbank, explains that the GBP/USD pair has eroded the 3 month uptrend at 1.3065 in the past week, but continues to hold the 200 day ma at 1.2977, which has neutralised their immediate outlook.
Key Quotes
“While we would allow for a rebound from the 200 day ma, it should be noted that downside risks are growing and intraday rallies are likely to struggle 1.3085/1.3165. However below the 200 day ma lies the 1.2929 55 day ma and the double Fibo retracement at 1.2900/1.2895. This guards the recent low at 1.2772.”
“The market recently reached 1.3382 before failing. Should the 55 week ma hold, our overall target remains the 1.3552 200 week ma.”
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