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GBP/USD consolidation not ruled out – Commerzbank

Cable’s recent sell off could allow for some consolidation, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

GBP/USD’s sell off is approaching the 200 day ma at 1.3538 and it is possible that this will provoke some consolidation. Intraday rallies are indicated to terminate at circa 1.3715/1.3815 and we have divergence on the intraday charts. We would therefore allow for some near term profit taking”.

“Slightly longer term, we look for a slide to the 55 week ma at 1.3371”.

“A daily close above 1.4377 will negate our negative bias (not favoured)”.

GBP/USD unchanged on weak PMI, around 1.3610

The Sterling keeps the upbeat mood today despite the disappointing result from UK’s Services PMI, pushing GBP/USD back above 1.3600 the figure. GBP/U
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European Monetary Union Consumer Price Index - Core (YoY) below forecasts (0.9%) in April: Actual (0.7%)

European Monetary Union Consumer Price Index - Core (YoY) below forecasts (0.9%) in April: Actual (0.7%)
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