In opinion of Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, Cable has now shifted its focus to a potential move to the 1.2770 region.
Key Quotes
“GBP/USD is showing signs of failure at the psychological resistance at 1.3000 and the recent high at 1.3013. Directly above here we have the 200 week ma at 1.3109, the 50% retracement of the move down from 2018 at 1.3167, the 5 year downtrend at 1.3170 and the 1.3187 May high and this is tough resistance and we look for the market to fail here”.
“Near term risk is shifting to the downside and attention is on the 1.2768 current November low. Failure at 1.2768 would probably see a slide to the 200 day ma at 1.2703. This guards the 1.2582 September high. Below 1.2582 lies the 1.2493 uptrend line. It guards 1.2196/94″.
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