GBP/USD cautious in the near term – Commerzbank

Cable’s outlook stays neutralising in the near term, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“Sterling recently reached the 55 week ma at 1.2966, where it is consolidating and we also note the presence of a TD perfected set up on the daily chart, this suggests some caution near term. The recent high was accompanied by the complex divergence of the daily RSI but the market needs to go back below the April 21 low at 1.2760 to alleviate upside pressure. We will remain medium term bullish while the currency pair stays above the 200 day ma at 1.2603. Around the 1.3000 mark the currency pair is likely to run out of steam, however, at least temporarily”.

“Below 1.2603 would trigger a slide back to 1.2515, the April 18 low and the 1.2347 February low”.