GBP/USD scope for a test of 1.24 and above – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable could attempt a visit to the 1.2374/1.2407 band.

Key Quotes

“Sterling failed to close below the 78.6% retracement at 1.2142, for 6 days and has reversed near term. It has based near term and is likely to re test the 55 and 100 day ma at 1.2374/1.2407. Above here initial resistance is 1.2583 (9 th Feb high). However only above 1.2658 channel 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 fail here”.

“The recent low at 1.2109 is considered to be the last defense for the 1.1988 January low and the bottom of the 5 month range at 1.1919”.