GBP/USD correction higher ended at 1.2555? – Commerzbank

The recent spike to the mid-1.2500s could represent the end of the correction higher in Cable, suggested Karen Jones, Head of FICC Technical Analyst at Commerzbank.

Key Quotes

“GBP/USD has failed on a move to 1.2555 - it is interesting to note that all the daily and intraday charts continue to indicate that this move higher is corrective only and the market should fail here. Initial support is 1.2335, the 19th October high. Recent lows remain 1.2090/83. Failure here would mean a continuation of the descent and should trigger losses to the May 1985 low at 1.1855. Our intraday Elliott counts are suggesting a decline to 1.1630”.

“Above 1.2555, there is scope for a test of the 1.2798/1.2840 6 th July low and 38.2% retracement of the entire move down from June”.

To learn more about this topic, check our video analysis: