GBP/USD: Negative price action – Commerzbank

GBP/USD has eroded the 1.2726 29th February low which together with the 200 day ma at 1.2705 was key. This is negative price action, in the opinion of Karen Jones from Commerzbank.

Key quotes 

“The move below the 1.2550/61.8% retracement targets the 78.6% retracement at 1.2290.”

“Rallies are likely to now find the 200 day ma at 1.2705 acts as near term resistance and we look for the market to ideally fail on rallies into the 1.2705/60 band.”