In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s stance remains neutral to negative although it could attempt a visit to the 1.3264/80 band.
Key Quotes
“GBP/USD is neutral to negative – the market last week struggled to maintain a foothold above the 20 day ma at 1.3171. Intraday Elliott wave counts have turned negative and as a result we have tightened up our stops. We would allow for recovery to the 1.3264/80 55 day ma and channel resistance. Last week’s low of 1.2957 was accompanied by a divergence of the daily RSI. Directly below here lies Fibonacci support at 1.2918 (50% retracement of the move up from 2016) and we are seeing some profit taking here”.
“Above 1.3363, the 9 th July high would imply a deeper corrective phase to the 1.3470/1.3500 area and there is scope for the 1.3585 200 day ma”.
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