GBP/USD attention to 1.2652 – Commerzbank

Karen Jones, Head of FICC Technical Analysis Research at Commerzbank, believes Cable could attempt a test of the mid-1.2600s.

Key Quotes

“GBP/USD has recently completed its symmetrical triangle and has eroded the 1.2797/50 July low and the long term Fibonacci support (78.6% retracement of the move from 1985 to 2007). It is poised to reach the channel support at 1.2652, and this may hold the initial test (parallel line from the top of the triangle). Our target is 1.22/1.2190 (this is the approximate measurement down from the symmetrical triangle pattern)”.

“We have a near term resistance line at 1.2957 (nearby high is 1.3056) and will consider that the market remains directly offered below here. We view the September high at 1.3443 as an interim high. Only if it and the late June high at 1.3534 were to be overcome would we neutralize our medium term negative outlook”.