Karen Jones, analyst at Commerzbank, notes that the GBP/USD pair has continued to hold and bounce from the short term uptrend at 1.2980 as the market has challenged the 1.3363 July 2018 high, reaching 1.3382 before failing.
“The new high has been accompanied by a divergence of the daily RSI and we would allow for some near term consolidation ahead of further upside attempts. Overall target remains the 1.3584 200 week ma. Below the 1.2980 short term uptrend lies the double Fibo retracement at 1.2900/1.2895. This guards the recent low at 1.2772.”
“Below 1.2772 we would allow for losses to the 1.2669/62 15th January low and August low and possibly the 1.2609/78.6% retracement.”