GBP/USD: Recovery in sight? – Commerzbank

In view of Karen Jones, analyst at Commerzbank, GBP/USD pair saw no upside follow through and the market has dipped back towards the 20 day ma at 1.2153.

Key Quotes

“Provided this holds the downside, we look for recovery to the 55 day ma at 1.2384 and the June high at 1.2784. But this lack of follow through is worrying and below the 20 day ma will alleviate immediate upside pressure and refocus attention on to the 1.2015 recent low and TD support at 1.1988.”

“Below 1.1988 lies the 1.1491 3 rd October low (according to CQG).”

“Only a rise above the June high at 1.2784 would indicate that a bottom is being formed (not favoured).”