GBP/USD: Easing back – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that GBP/USD pair is consolidating below the mid-July high at 1.2580 and minor support below the 1.2385 September 9 high is found at the 55 day moving average and the September 12 low at 1.2296/1.2283 and around here we would expect the market to attempt to stabilise.

Key Quotes

“Further minor support sits between the early and mid-August lows at 1.2080/15 and major support lies at the 1.1958 current September low. Further up strong resistance between the seven month resistance line, 200 day ma and the June high at 1.2663/1.2784 remains in sight.”

“A slip through the 1.1958 recent low would put the 1.1491 October 2016 low (according to CQG) on the cards.”