GBP/USD faces further downside near term – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted Cable risks a deeper retracement in the short term horizon.

Key Quotes

“GBP/USD is seeing a correction lower unfold near term. Below it lies the 55 day moving average at 1.2996. Currently the technical signals are conflicting – and for now we will attempt to buy the dip. It will maintain an upside bias above the 55 day ma”.

“A move above last week’s high at 1.3298 would bring the 1.3363 July into focus. A move above the 1.3363 July high would imply a deeper corrective phase to the 1.3473/1.3514 June high and 200 day moving average”.