In the view of Karen Jones, analyst at Commerzbank, the downside looks more compelling in the GBP/USD pair amid some profit-taking ahead of the UK election.
Key Quotes:
“GBP/USD has reached the 50% retracement of the move down from 2018 at 1.3167 and the 1.3187 May high and the January high at 1.3217 – this is tough resistance and we look for the market to see initial fail here.
We note the daily RSI has not confirmed the new high and we note the TD perfected set up on the daily chart. Both imply some profit taking. Minor support is offered by 1.3013 October high and the 20-day ma at 1.2981 and this guards the 1.2768 8th November low.
Failure at 1.2768 would probably see a slide to the 200-day ma at 1.2696. This guards the 1.2582 September high. Below 1.2582 lies the 1.2593 uptrend line. It guards 1.2196/94.
A close above 1.3187/1.3217 will open the way to the 1.3382 the 2019 high and potentially the 61.8% retracement at 1.3450.”
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