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Karen Jones, Analyst at Commerzbank, points out that the GBP/USD pair is holding the bottom of its 4 month trading range and will find initial resistance at the 55 day ma at 1.2988 and the resistance line at 1.3035, where it is likely to struggle.

Key Quotes

“Support lies at 1.2710/1.2662, the August low and 3 month support line. Below 1.2662 would trigger further weakness to the 61.8% Fibonacci retracement of the 2016-2018 advance and the June 2017 low at 1.2593/89. Above 1.3035 lies the November 14 high at 1.3072. Further resistance comes in at the 1.3175 current November high below which we will retain a longer term bearish bias.”

“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.”