GBP/USD focus stays on 1.2401/08 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable remains focused on the 1.2400 neighbourhood.

Key Quotes

“Last week the market failed just ahead of the 1.2583 8 th February high and this guards the top of the channel at 1.2679. Attention remains on its 55 and 100 day moving averages at 1.2401/08. We suspect that prices will need to go sub 1.2250 in order to alleviate immediate upside pressure and trigger losses to the 1.1988/80 recent low. Immediate support is the 1.2347 February low”.

“Only above 1.2679 would allow for further strength to the 1.2776 December high. Between here and 1.2836 lies several Fibonacci retracements and major resistance and we suspect that it will struggle here”.