GBP/USD: Bottom formed – Commerzbank

Axel Rudolph, analyst at Commerzbank, suggests that GBP/USD’s ascent has taken the cross to the May and June lows at 1.2506/59 and between these levels and the mid-July high at 1.2580 the cross short-term consolidated for a day or two.

Key Quotes

“Further up strong resistance between the seven month resistance line, 200 day ma and the June high at 1.2689/1.2784 remains in sight. Minor support below the 1.2385 September 9 high comes along the 55 day moving average and the September 12 low at 1.2298/1.2283. Further minor support sits between the early and mid-August lows at 1.2080/15 and major support at the 1.1958 current September low.”

“A slip through the 1.1958 recent low would put the 1.1491 October 2016 low (according to CQG) on the cards.”