GBP/USD to bounce higher very near term - Commerzbank

Karen Jones, analyst at Commerzbank, suggests that GBP/USD’s new low has not been confirmed by the daily RSI.

Key Quotes

“We also note the 13 count on the 60 minute chart and the TD support at 1.2359 and we expect it to bounce higher very near term. Below 1.2359 we have very little support until the 1.2108, the 78.6% retracement of the entire move up from the 2016 low. The market now stays offered below the 1.2594 downtrend.”

“A rise above the June high at 1.2784 would indicate that a bottom is being formed (not favoured).”