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GBP/USD is downside corrective near term as it backs away from Fibonacci resistance at 1.3285, suggests Karen Jones, analyst at Commerzbank.

Key Quotes

“We look for dips lower to remain well supported by the 55 day ma at 1.2980. The low on the 23rd December was 1.2908 and while above here we will assume an upside bias to retest the December high at 1.3515. The December high at 1.3515 guards the September 2017 high and 38.2% retracement (of the move down from 2014) at 1.3658/68. This guards the more important 1.3918 2007 -2020 downtrend.”

“Failure at the 1.2908 support would put the 200 day moving average at 1.2690 back on the plate.”