Karen Jones, analyst at Commerzbank, explains that GBP/USD pair continues to hold below the 1.2763/72 resistance (the 7th June high and February low) and they maintain a slightly negative bias.

“It charted a key day reversal on Tuesday last week and the Elliott wave count on the daily chart is negative implying that the market is likely to slide back towards the 1.2559/1.2506 recent lows. Please note that intraday Elliot wave counts are positive, which is contradictory. Below 1.2506 would target the 1.2444 December 2018 low. This is the last defence for 1.2108, the 78.6% retracement of the move up from 2016. The market will have to overcome last weeks high at 1.2784 on a closing basis in order to generate some further upside interest. This will target the 200 day ma at 1.2913, but we are looking for this to then cap the topside.”