In view of Axel Rudolph, analyst at Commerzbank, GBP/USD’s advance from its current September low at 1.1958 still has the May and June lows at 1.2506/59 in its sights and between these levels and the mid-July high at 1.2580 the cross may short-term struggle.

“Further up lies strong resistance between the seven month resistance line, 200 day ma and the June high at 1.2715/84. Once a weekly Friday chart close above the 1.2310 August high has been made, we will change our weekly outlook to a bullish one. Minor support below yesterday’s low at 1.2233 is seen between the early and mid-August lows at 1.2080/15 and major support at the 1.1958 current September low. A slip through the 1.1958 recent low would put the 1.1491 October 2016 low (according to CQG) on the cards.”