FX: GBP/USD: Reversal ahead of 1.6745/65 means that rally is over - Commerzbank
The Pound is trading in a range around 1.6300 after its 390 pips sell-off seen last Friday, which ,according to Karen Jones, technical analyst at Commerzbank, slammed the Pound's two-weeks long rally.
Market is now back under bearish pressure, according to Jones, with next support at 1.6200: "GBP/USD’s large key day reversal ahead of 1.6745/65 implies that the 2 week rally is over and the market is back under pressure in its range. We have interim support at 1.6200, 1.6115/1.6085 and failure here should be enough to refocus attention on to the 1.5690/1.5710 support."
On the upside Jones points out to 1.6745/70 to hold potential rallies: "Key short term resistance remains 1.6745/70, the June and September high and Fibonacci retracement – we look for this to hold the initial test. Above here would introduce scope to 1.7040/50."
