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Karen Jones, analyst at Commerzbank, notes that GBP/USD recovered slightly yesterday but has not dislodged any resistance of note and is on the defensive.

Key Quotes

“Attention has reverted to the January 2017 low at 1.1988 (we have a 13 count on the daily chart and TD support is 1.1988). This does imply that we are likely to see this hold the initial test. 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 1.2392 today. Only above the downtrend this would introduce scope to the 55 day ma at 1.2492 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).”