GBP/USD approaching 1.2550 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, assessed the recent price action around Cable.

Key Quotes

“Has sold off and is approaching its 200 day ma at 1.2555. We note the 13 count on the 60 minute chart and would allow for this to hold the initial test. The market stays directly offered below its 55 day ma at 1.2811 and 20 day ma at 1.2814. The previous range 1.2775-1.3060 should now act as formidable nearby resistance. Below the 200 day ma we look for losses to extend to the 1.2500 9 month support line and 1.2468/61.8% retracement. There is potential for the 1.2366 the 10th April low”.

“The rally will find initial resistance offered by the range above 1.2775, the 20 day ma lies at 1.2811/14. But only above 1.3060 would target the 1.3446 September 2016 high”.