Karen Jones, analyst at Commerzbank, suggests that GBP/USD’s recent move to 1.2479/77 was not confirmed by the daily RSI and they are seeing a near term rebound/consolidation.
“While rallies remain capped by the 20 day ma at 1.2733 we will regard the market as vulnerable on the downside. Below 1.2477 targets the 78.6% retracement at 1.2109. Above the 20 day ma lies the 1.2840 current December high but while capped by the resistance line at 1.2953 it will remain offered.”
“Only a rise above the July, September and October highs at 1.3258/1.3363 would put the June high at 1.3473 on the cards.”