GBP/USD is easing back – Commerzbank

In view of Karen Jones, analyst at Commerzbank, GBP/USD’s rise to the mid-July high at 1.2580 was accompanied by a divergence of the daily RSI and this has provoked some very near term profit taking.

Key Quotes

“Minor support below the 1.2385 September 9 high comes along the 55 day moving average and the September 12 low at 1.2295/1.2283 and around here we would expect the market to attempt to stabilise.”

“Further minor support sits between the early and midAugust lows at 1.2080/15 and major support 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 1.2669/1.2784 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.”