GBP/USD still reluctant to breach 1.30 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, a break of the key support at 1.3000 still remains elusive.

Key Quotes

“GBP/USD sold off yesterday but also remains reluctant to sustain a break below 1.3000. The market is currently oscillating around the 20 day ma and this has neutralised the immediate outlook”.

“The intraday Elliott wave continues to suggest some scope for near term recovery. Above here we have 1.3534, the 29th June high and we remain unable to rule out a rally to 1.3638, the 38.2% retracement and potentially 1.4158, the 61.8% retracement of the recent sell off”.

“Resistance at .7688 and the 3 rd May high .7717 represent the last defence for the .7836/50 recent high and the 38.2% retracement, this is tougher resistance and we look for the market to fail here, if this is reached”.