GBP/USD upside still capped at 1.2335 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted Cable’s occasional bullish attempts remain limited around 1.2335.

Key Quotes

“GBP/USD is holding sideways above the 1.2090/83 support. Rebounds from here are expected to remain tepid and remain capped by 1.2335. The market will stay directly offered below here and we await a break below 1.2090/83 to trigger another leg lower”.

“Failure here would mean a continuation of the descent and if we use the range 1.2090-1.2335 to measure downwards our initial target is 1.1845 (the May 1985 low is 1.1855). Our intraday Elliott counts are suggesting a decline to 1.1630”.

“Should resistance at 1.2335 be overcome then this would trigger scope for further gains to the 1.2500 vicinity”.