GBP/USD: Losing upside momentum – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that for the GBP/USD pair, some caution is warranted as the daily RSI is breaking lower and this does reflect a loss of upside momentum, after it has eased back to the 200 day ma and the near term uptrend at 1.3062.

Key Quotes

“For now the intraday Elliott wave counts remain bid and for now we will go with it. We continue to target the 55 week ma at 1.3280. Here we also find the July, September and October highs at 1.3258/1.3363.”

“We suspect that this will hold and provoke failure. Above here would target the June high at 1.3473 and the 200 week ma at 1.3641 (not favoured).”