GBP/USD downside pressure persists below 1.3031/49 – Commerzbank

Cable should stay under downside pressure while below the 1.3031/49 band, suggested Axel Rudolph, Senior Technical Analyst at Commerzbank.

Key Quotes

“GBP/USD recovers from the six month support line at 1.2866 with the 55 day moving average and July 20 low at 1.2931/33 being eyed. Having said that, we continue to suspect that the 1.3267 current August high was the end of the up move. While trading below the next higher 1.3031/49 May and August 11 highs immediate downside pressure will be maintained. Further resistance sits at the 1.3126 July 18 high”.

“Once the current August low at 1.2842 has given way the 1.2775/59 area will be in focus. It contains the December 2016 high and the April 21 low”.