GBP/USD bearish below 1.2860 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable should stay bearish while below 1.2860.

Key Quotes

“GBP/USD continues to struggle at its 55 day ma at 1.2800 and while capped by its 20 day ma at 1.2860 will maintain a bearish bias. Nearby support remains 1.2642/36, which has now held the downside 3 times. We remain unable to rule out a brief extended rally towards 1.2800/40 ish. Provided that the rally remains capped by the 20 day ma at 1.2860 the market will remain vulnerable on the downside”.

“The previous range 1.2775-1.3060 should now act as formidable nearby resistance. We look for losses to extend to the 200 day ma at 1.2566 and then the 1.2468/61.8% retracement. There is potential for the 1.2366 the 10th April low”.