GBP/USD to bounce from 200-DMA at 1.2735 ahead of further losses – Commerzbank

The GBP/USD pair prints 0.20% gains to trade around 1.2820. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects a small rebound from the 200-day ma at 1.2733 ahead of further losses.

Key quotes

“GBP/USD last week eroded uptrend support at 1.2883 it starts this week under pressure. The market is approaching the 200-day ma at 1.2735 and Fibo support at 1.2691. While this may hold the initial test, it is now exposed and near term risk is on the downside. Failure here will target 1.2445 and then 1.2250/00.”

“Intraday rallies are likely to find that the 20-day ma at 1.3142 now acts as near-term resistance and while capped here the market remains directly offered.”