GBP/USD: Near term rebound coming? - Commerzbank

Karen Jones, analyst at Commerzbank, suggests that we are likely to see a near term rebound/ consolidation for the GBP/USD after it recently eroded the bottom of its 4 month trading range and the 61.8% Fibonacci retracement of the 2016-2018 advance, but the move to 1.2479 was not confirmed by the daily RSI.

Key Quotes

“Below 1.2477 targets the 78.6% retracement at 1.2109. Previous range lows at 1.2662 will offer initial resistance ahead of the 1.2840 current December high but while capped by the resistance line at 1.2961 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.”