Karen Jones, analyst at Commerzbank, explains that the GBP/USD pair has eroded the 3 month uptrend at 1.3065 in the past week, but continues to hold the 200 day ma at 1.2977, which has neutralised their immediate outlook.

“While we would allow for a rebound from the 200 day ma, it should be noted that downside risks are growing and intraday rallies are likely to struggle 1.3085/1.3165. However below the 200 day ma lies the 1.2929 55 day ma and the double Fibo retracement at 1.2900/1.2895. This guards the recent low at 1.2772. The market recently reached 1.3382 before failing. Should the 55 week ma hold, our overall target remains the 1.3552 200 week ma.”