In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable remains under pressure and risks further retracements.
Key Quotes
“GBP/USD has backed away from the 20 day ma at 1.3140, and is under pressure. Intraday Elliott wave counts remain negative and near term risks remain on the downside. We are unable to rule out a recovery to the 1.3234/60 55 day ma and channel resistance, but consider this unlikely. Directly below the market lies Fibonacci support at 1.2918 (50% retracement of the move up from 2016) and we would allow for some profit taking here”.
“Below 1.2918 would be treated as the break down point to 1.2580, the 61.8% retracement from 2016″.
Share
