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GBPUSD rally not expected to continue

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GBPUSD edged higher last week, helped in part by better-than-expected UK employment data.

But this could be as good as it gets, according to analysts at Commerzbank, with the recent rally expected to fizzle out around 1.3200/67, leaving the market under pressure.

“The pattern on the chart is no longer a symmetrical triangle but appears to be developing into a larger descending triangle pattern,” according to the German bank’s analysts.

“The focus is on the 1.2797/50 July low and Fibo and a close below here will be regarded as very negative and target 1.2060. Key resistance is now the top of the triangle at 1.3367.”

GBPUSD trades at 1.3075.

Paul

The author Paul