Currently, the pound is being tested for support in the range 1.2275 / 59, suggested Axel Rudolph, senior technical analyst at Commerzbank. “GBP / USD has now fallen below the Fibonacci mark of 38.2% at 1.2825 and is testing the July low at 1.2811, the fall below which will signal a move to the area of 1.2775 / 59, the low of December 2016, the end of April and the end of May. Further down we have a 50% Fibonacci retracement and a 200-day moving average of 1.2688 / 50.
We continue to suspect that the current August high of 1.3267 was the final local peak. While the trading will pass below the level of 1.3031 / 49, May’s high and August 11, bearish pressure will prevail. Further resistance is at the maximum on July 18 13126 »