GBP/USD neutral to negative – Commerzbank

Cable’s outlook is seen neutral to negative for the time being, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“Last week we saw the market perform a key day reversal (only just) and the new high was accompanied by a divergence of the daily and weekly RSI. As a consequence we suspect that this week we will see the market come under downside corrective pressure. We would allow for a dip back to the 1.2929 near term uptrend (virtually already seen). It will need to close below here in order to negate upside pressure and retarget 1.2775/50. Above 1.3126 will target the 1.3446/60 September 2016 high. Key support remains 1.2775/50”.

“The market should now find decent support circa 1.2775/50. Below 1.2750 there is scope for an extension to its 200 day ma and uptrend at 1.2585/1.2611”.