GBP/USD: Under pressure – Commerzbank

Karen Jones, analyst at Commerzbank, notes that GBP/USD came under pressure yesterday and this leaves attention on the 61.8% retracement at 1.2196.

Key Quotes

“Near term resistance lies 1.2385/1.2413 and the market is deemed as being under pressure while capped here. Below 1.2196 lies the early and mid-August lows at 1.2091/15 and major support lies at the 1.1958 current September low.”

“A slip through the 1.1958 recent low would put the 1.1588 1985-2019 support line and the 1.1491 October 2016 low (according to CQG) on the cards.”

“A close above 1.2413 would introduce scope to the 1.2582 20th September high. Further up strong resistance between the seven month resistance line at 1.2612 and the 200 day ma at 1.2717 caps the market. Intraday Elliott wave counts are negative.”