Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the pair keeping the negative bias below the 1.5930 level.
“GBP/USD is probing the base of the channel at 1.5233. We are not convinced that the market is quite ready to sustain another leg lower at this stage and would allow for a small rebound”.
“A close below 1.5233 however would force us to adopt a more bearish stance as this should be enough to trigger losses to the 1.5172 June low and 1.5088 the 61.8% retracement”.
“Intraday rallies should find initial resistance circa 1.5425, the 7th August low ahead of 1.5660 and the 1.58175 recent high”.