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GBP/USD has bounced off the six-month uptrend at 1.2871 and is settling around the 1.30 level. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, has reinstated tiny longs at 1.2905 with the initial target at the 1.3180 20-DMA.  

Key quotes

“GBP/USD has sold off to the 55-day ma and uptrend support at 1.2871 and seen a decent rebound off there. Intraday rallies are likely to find that the 20-day ma at 1.3180 now acts as near-term resistance and guards the mid-August peak at 1.3268. We have for now reinstated long positions, with a tight stop below the uptrend.

“The 1.3268 level then guards the 1.3483 recent high and the 1.3522 long term downtrend.”