GBP/USD: Key reversal - Commerzbank

In view of Karen Jones, analyst at Commerzbank, GBP/USD is consolidating below the 1.2763/72 resistance (the 7th June high and February low).

Key Quotes

“It charted a key day reversal on Tuesday and the Elliott wave count has turned negative implying that the market has failed here and is likely to slide back to the 1.2600 region and potentially the 1.2559/1.2506 recent lows.”

“The market will have to overcome this weeks high at 1.2784 on a closing basis in order to generate some further upside interest. This will target the 200 day ma at 1.2918, but we are looking for this to then cap the topside.”

“Below 1.2506 would target the 1.2444 December 2018 low. This is the last defence for 1.2108, the 78.6% retracement of the move up from 2016.”