GBP/USD: Neutral to slightly positive outlook - Commerzbank

Karen Jones, analyst at Commerzbank, suggests that the GBP/USD’s outlook is neutral to slightly positive after the slide lower recently halted at 1.2532.

Key Quotes

“The new low was accompanied by a large divergence of the daily RSI and the market has eroded the accelerated downtrend. Rallies will need to regain the more important 1.2763/72 resistance (the 7 th June high and February low) in order to generate some upside interest. This will target the 200 day ma at 1.2929.”

“Below 1.2532 would target the 1.2444 December 2018 low. This is the last defence for 1.2108, the 78.6% retracement of the move up from 2016.”