GBP/USD key resistance lies at 1.2640 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable faces strong resistance in the 1.2640 area.

Key Quotes

“Sterling failed to close above its near term resistance at (1.2579/81 February 9 th high, and the 78.6% retracement), and has seen quite emphatic rejection from here. It has yet to close below the 55 and 100 day moving averages and saw a rebound yesterday. Intraday Elliott counts are conflicting. Below 1.2347 (Feb low) would cast attention back to the 1.2110 recent low. This is considered to be the last defence for the 1.1988 January low and the bottom of the 5 month range at 1.1901”.

“Key near term resistance is the top of the channel at 1.2640. 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”.