GBP/USD upside appears limited – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, further gains in Cable appears somewhat limited for the time being.

Key Quotes

“GBP/USD has rallied towards and appears to be faltering already ahead of 55 day ma at 1.2539 and the November 4 high at 1.2556. Further up sits the November high at 1.2674 and we believe that upside scope is in fact quite limited”.

“A drop below the 1.2304 level would put the 1.2090/85 October 11 and 25 lows on the map”.

“Failure at 1.2085 would mean a continuation of the descent and should trigger losses to the October low at 1.1938 (according to CQG). Below it lies the May 1985 low at 1.1855. We regard the recent peak at 1.2674 as the end of the corrective phase and look for further losses”.