GBP/USD faces minor support at 1.2931 – Commerzbank

Cable’s downside momentum is expected to test the 1.2930 region in the near term, suggested Axel Rudolph, Senior Technical Analyst at Commerzbank.

Key Quotes

“GBP/USD remains under pressure following the key day reversal recently from the 50% retracement at 1.3255 and the break of its near term uptrend: With such a strong rejection from the Fibo resistance seen, we continue to suspect that 1.3267 was the end of the move. We have minor support offered by the 55 day ma at 1.2931 but look for this to be eroded for losses to the support circa 1.2775/50 (December 2016 high). Intraday rallies are likely to find initial resistance at 1.3035/55 ahead of the 1.3267 recent high”.

“Above 1.3267 we have TD resistance at 1.3311 and the 1.3446/1.3502 September 2016 high and the 2009 low”.