GBP/USD bias neutral to negative – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, remains cautious on Cable, adding that the bias stays neutral to negative.

Key Quotes

“GBP/USD yesterday eroded its 55 day ma but no close was seen below here – it lies at 1.2429. Yesterday’s price action was a minor reversal and caution is warranted. The market last week was rejected by the top of a channel at 1.2702. A close below the 55 day ma will introduce potential to the 1.2253 the 18th January low. Our bias is neutral to negative”.

“We suspect that prices will need to go sub 1.2250 in order to alleviate immediate upside pressure and trigger losses to the 1.1988/80 recent low”.