GBP/USD: Directly offered below the 55-day ma at 1.2297 – Commerzbank

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GBP/USD’s bounce last week failed to make any impression on the 55-day ma and will remain directly offered while capped by it at 1.2297, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, briefs.

See: GBP/USD Confluence Detector

Key quotes

“Attention is still on the 50% retracement of the March-to-April advance at 1.2030 below which lies the minor psychological 1.2000 mark. Further down sit the September low at 1.1958 and the March 20 high at 1.1935.” 

“A drop below 1.1935 is needed to refocus attention on 1.1491, the 2016 low, and also on the March low at 1.1409. Fibonacci support en route is found at 1.1883 and at 1.1675.”

“Near-term rallies should find initial resistance at the 55-day moving average at 1.2297. Further resistance can be spotted at the 1.2468 May 8 high ahead of the 200-day ma at 1.2659.”