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Karen Jones, Analyst at Commerzbank, explains that the GBP/USD continues to consolidate near term below the 55 day ma at 1.3003 and the resistance line at 1.3060, which leaves the onus on the downside.

Key Quotes

“Support lies at 1.2708/1.2662, 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.”

“Immediate downside pressure will remain while the cross stays below the 55 day moving average and November 14 high at 1.3003/72. Further resistance comes in at the 1.3175 current November high below which we will retain a bearish bias.”

Short term trend (1-3 weeks): Range trades between 1.2662 and 1.3260/1.3363 but with a bearish bias.”