Commerzbank recommends caution regarding the pound

Analysts at Commerzbank remain wary of pound, adding that the behaviour of the currency can be described as somewhere between neutral and negative.
GBP/USD broke through 55-day moving average, but could not close below support, which is located at 1.2429. Price movements can be interpreted as a slight twist, so attention is now fully justified. Last week, the market bounced off the top of the channel at 1.2702. Closing below 55-day moving average, opens the way for a fall to 1.2253, a minimum of 18 January.
The forecast of analysts from the bank remains neutral to negative. They suspect that prices will have to break through 1.2250 to relieve the current upward pressure and cause testing of minimums at 1.1988/80.