According to analysts at Commerzbank, GBP/USD pair has failed to make much impression on the 20 day ma at 1.3096 and is easing lower.
“The focus is on the 200 day ma at 1.2969 – this maintains a neutral to positive bias very near term, however upside interest appears to be waning. Above 1.3217 (25th January high) will introduce scope up to the 1.3351/82 resistance.”
“Below the 200 day ma lies the 1.2959 55 week ma and the double Fibo retracement at 1.2900/1.2895, this is pretty solid support that is expected to hold the initial test. This guards the recent low at 1.2772.”
“The market recently reached 1.3382 before failing. Should the 55 week ma hold, our overall target remains the 1.3552 200 week ma.”
“Below 1.2772 we would allow for losses to the 1.2669/62 15th January low and August low and possibly the 1.2609/78.6% retracement.”