GBP/USD: Downside pressure to be alleviated – Commerzbank

The cable is holding steady and is well placed to test the 55-day moving average at 1.3047 and the short term downtrend at 1.3049 as Commerzbank’s Karen Jones notes. 

Key quotes 

“The potential falling wedge is intact and a close above the downtrend will complete it. This will alleviate downside pressure and should be enough to trigger recovery to initially 1.3285 and the 2015-2020 resistance line at 1.3402.” 

“Dips lower should ideally hold over the 1.2849 recent low and the 1.2844 support line.”