GBP/USD rallies appear capped near 1.3060 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, occasional bullish attempts should find strong resistance in the 1.3060 region.

Key Quotes

“Sterling has recently failed just ahead of 1.3060 the 29th September high. The recent new high was not confirmed by the RSI and we note the 13 count on the daily chart. The erosion of the short term uptrend has seen the market sell off to 1.2776 the 6 th December high, we would allow for a tepid bounce from here ahead of losses to the 1.2590/68 the 200 and 55 day ma. Intraday rallies are indicated to fail circa 1.2850/60”.

“Intraday rallies are likely to struggle 1.2865 and remain capped by 1.3060. Only above here would target the 1.3446 September 2016 high”.