GBP/USD: Near term support – Commerzbank

According to Karen Jones, analyst at Commerzbank, GBP/USD is finding near term support at the 61.8% retracement at 1.2196.

Key Quotes

“Further minor support sits between the early and mid-August lows at 1.2080/15 and major support lies at the 1.1958 current September low. It is not clear cut and we have conflicting signals but we suspect that we will see a deeper near term rally.”

“Intraday rallies are likely to remain capped by 1.2350/85 and further up strong resistance between the seven month resistance line, 200 day ma and the June high at 1.2633/1.2784 caps the market.”

“A slip through the 1.1958 recent low would put the 1.1491 October 2016 low (according to CQG) on the cards.”