GBP/USD consolidation likely ahead of a potential leg lower – Commerzbank

Cable remains poised for some consolidation in the near term ahead of a potential pullback with target at 1.2590, suggested Axel Rudolph, Senior Analyst at Commerzbank.

Key Quotes

“GBP/USD’s fall below the December 2016 and January 2017 highs and August 2017 low at 1.2776/1.2706 puts the June 2017 low at 1.2590 on the cards. First, some further minor stabilization is to be seen today, however”.

“Minor resistance above the 1.2827 August 14 high comes in at the 1.2957 July low”.

“Over the next few days the risk remains on the downside while trading below the 1.3173 July 30 high. Minor resistance below this level comes in at the 1.2957 July 19 low as well as at the 1.3049 and 1.3102 late June lows”.