GBP/USD sticks to its neutral/negative bias – Commerzbank

Following the recent price action, Cable’s stance should remain neutral/negative for the time being, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD has again sold off to the 1.2776 December high and has seen a decent rebound from here: The market has sold off to and is currently seeing a rebound from 1.2776 the 6 th December high, it has not overcome any resistance of note and for now we will maintain a neutral to negative bias. Rebounds are indicated to terminate circa 1.2910 ahead of losses to 1.2582/87, the 200 and 55 day ma and the 1.2366 the 10th April low”.

“Intraday rallies are likely to struggle 1.2910 and remain capped by 1.3060. Only above here would target the 1.3446 September 2016 high”.