GBP/USD poised for further decline near term – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable could see its sell off extended in the short term.

Key Quotes

“GBP/USD last week we charted a TD perfected set up on the daily chart and the near term risk is that we will see a deeper sell off. Dips lower are indicated to hold circa 1.2420/1.2340. Currently we remain unable to rule out further strength to the 1.2776 December high. Between here and 1.2836 lies several Fibonacci retracements and major resistance and we suspect that it will struggle here”.

“The market is bid above the 55 day ma at 1.2418 and the near term risk remains on the topside. We suspect that prices will need to go sub 1.2250 in order to alleviate immediate upside pressure. Support at 1.2250 guards the 1.1988/80 recent low”.