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In view of Karen Jones, analyst at Commerzbank, GBP/USD is currently seeing a stronger near term recovery from support at the 61.8% retracement at 1.2196.

Key Quotes

“The near term rally has reached initial resistance at 1.2385 and a close above here (which so far has not been seen) would introduce scope to the 1.2582 20th September high. Further up strong resistance between the seven month resistance line, 200 day ma and the June high at 1.2628/1.2784 caps the market.”

“Below 1.2196 lies the early and mid-August lows at 1.2080/15 and major support lies at the 1.1958 current September low.”

“A slip through the 1.1958 recent low would put the 1.1491 October 2016 low (according to CQG) on the cards.”