GBP/USD: Loss of downside momentum - Commerzbank

According to Karen Jones, analyst at Commerzbank, GBP/USD’s slide lower has halted at 1.2532 as the new low has been accompanied by a large divergence of the daily RSI and the market have eroded the accelerated downtrend.

Key Quotes

“Rallies will need to regain the more important 1.2763/72 resistance (the 7th June high and February low) in order to generate some upside interest. This will target the 200 day ma at 1.2931. Below 1.2532 would trigger further losses to the 1.2444 December 2018 low.”

“Below 1.2532 would target the 1.2444 December 2018 low. This is the last defence for 1.2108, the 78.6% retracement of the move up from 2016.”