GBP/USD could allow a small bounce – Commerzbank

Following the recent sell-off, Cable could attempt a mild rebound, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“Sterling has recently failed just ahead of 1.3060 the 29th September high. The recent new high was not confirmed by the RSI and we note the 13 count on the daily chart. The erosion of the short term uptrend at 1.2839 has seen the market sell off to 1.2776 the 6 th December high, we would allow for a tepid bounce from here ahead of losses to the 1.2591/61 the 200 and 55 day ma”.

“Intraday rallies are likely to struggle 1.2865 and remain capped by 1.3060. Only above here would target the 1.3446 September 2016 high”.