GBP/USD: Consolidating at the moment – Commerzbank

GBP/USD pair is consolidating as the recent move to 1.2479/77 was not confirmed by the daily RSI and we are seeing a small rebound, points out Karen Jones, analyst at Commerzbank.

Key Quotes

“While rallies remain capped by the 20 day ma at 1.2692 and this weeks high at 1.2706, however, we will regard the market as vulnerable on the downside. Below 1.2477 targets the 78.6% retracement at 1.2109. Above the 20 day ma lies the 1.2840 current December high but while capped by the resistance line at 1.2928 it will remain offered.”

“Only a rise above the July, September and October highs at 1.3258/1.3363 would put the June high at 1.3473 on the cards.”