GBP/USD: Some stabilization here - Commerzbank

According to Karen Jones, analyst at Commerzbank, GBP/USD pair has sold off to the 50% retracement at 1.2830 and the 55 day ma at 1.2813 and is bouncing from these supports.

Key Quotes

“We would allow for stabilisation here, however to reassert upside pressure a move back above the 200 day ma at 1.3017 is needed. Above here should be enough to cast our eyes back to the 1.3217 recent high. The 55 day ma guards the 1.2669/62 mid-January and August lows. The intraday Elliott wave counts remain negative.”

“Overhead lies the 55 week ma at 1.3254. Here we also find the July, September and October highs at 1.3258/1.3363. We suspect that this will hold and provoke failure. Above here would target the June high at 1.3473 and the 200 week ma at 1.3630 (not favoured).”