GBP/USD rallies are seen corrective – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, rallies in Cable could be seen as selling opportunities.

Key Quotes

“GBP/USD is sitting on support at 1.3302/20, the mid-December low. Given the 13 count and the oversold RSI it is possible that this will hold the initial test. However rallies will be viewed as corrective opportunities to reinstate short positions. Below 1.3290 will trigger losses to the 1.3040 October low”.

“Currently intraday Elliott wave counts are pointing to a 1.3470/1.3570 move. The March low lies at 1.3712. Rallies are expected to remain capped by the 1.3852 55 day moving average and while below here the market will remain directly offered”.