GBP/USD could attempt a test of 1.2645 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable should start focusing on the mid-1.2600s.

Key Quotes

“Sterling held over 1.2460 for 3 times last week and has eroded near term resistance at (1.2579/81 February 9 th high, and the 78.6% retracement), we will need a close above here to confirm the break. This targets the 1.2645 top of the channel. The market is immediately bid above the 20 and 55 day ma at 1.2419/1.2405”.

“Only above the 1.2707 February high would allow for further strength to the 1.2776 December high to be seen. Between it and 1.2836 lie several Fibonacci retracements and major resistance and we suspect that it will fail there”.