GBP/USD: Signs of reversal - Commerzbank

According to Karen Jones, analyst at Commerzbank, GBP/USD pair is showing signs of reversal ahead of the 61.8% retracement at 1.2740.

Key Quotes

“Following its failure last week just ahead of the 200 day ma at 1.3006, this is the barrier which needs to be overcome to alleviate downside pressure.”

“Our attention is currently on the downside and we would allow for losses to the 1.2739/61.8% retracement and potentially the 1.2669/62 15th January low and August low. The intraday Elliott wave counts are conflicting.”

“Only a move back above the 200 day ma at 1.3013 would be enough to cast our eyes back to the 1.3217 recent high.”