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According to Karen Jones, analyst at Commerzbank, GBP/USD pair is showing embryonic signs of recovery as the market remains under pinned by the January 2017 low at 1.1988, implying that it should hold the initial test.

Key Quotes

“Below here lies the 1.1491 3rd October low (according to CQG). Rallies, if seen, should struggle circa 1.2210/1.2320. It stays negative while contained by its 3 month downtrend at 1.2359 today. Only above the downtrend this would introduce scope to the 55 day ma at 1.2462 and the June high at 1.2784.”

“Only a rise above the June high at 1.2784 would indicate that a bottom is being formed (not favoured).”