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GBP/USD last week failed at the 55 day moving average at 1.3055 and reacted lower but on Friday. The cable can overcome the short-term downtrend, as Commerzbank’s Karen Jones notes.

Key quotes

“The cable remains capable of overcoming the short term downtrend at 1.3066. The intraday Elliott wave is implying that this is the end of the down move, the RSI has not confirmed the new low and we have not closed below the 1.2872 low.”

“For now, we suspect a bounce higher and beyond that we are neutral. Only above the downtrend would negate downside pressure for recovery to initially 1.3285 and the 2015-2020 resistance line at 1.3402.”