GBP/USD: Growing downside risks - Commerzbank

Karen Jones, analyst at Commerzbank, suggests that the GBP/USD pair has neutralised their immediate outlook as it continues to hold over the 200 day ma at 1.2976.

Key Quotes

“While we would allow for a rebound from the 200 day ma, it should be noted that downside risks are growing and intraday rallies are likely to struggle on rallies to the 1.3163 20 day ma.”

“Below the 200 day ma lies the 1.2929 55 week ma and the double Fibo retracement at 1.2900/1.2895, this is pretty solid support that is expected to hold the downside. This guards the recent low at 1.2772. The market recently reached 1.3382 before failing. Should the 55 week ma hold, our overall target remains the 1.3552 200 week ma.”

“Below 1.2772 we would allow for losses to the 1.2669/62 15th January low and August low and possibly the 1.2609/78.6% retracement.”