GBP/USD now eyes 1.3443/6 – Commerzbank

In light of the solid performance of Cable as of late, Karen Jones, Head of FICC Technical Analysis at Commerzbank, now suggests the probability of a potential test of the 1.3443/6 area.

Key Quotes

“GBP/USD has eroded the 1.3267 August high, this was also the approximate 50% retracement of the move down from June 2016 (1.3255). This was key resistance and the close above here should be enough to trigger another leg higher to the 1.3443/6 September 2016 high. Very near term we notice the 13 count on the 60 minute chart and would allow for a minor dip back”.

“Dips are indicated to hold circa 1.3070/35. This guards minor support at 1.2986 ahead of the 1.2826 longer term channel”.

“The 1.2775/59 support zone consists of the December 2016, late April and late May lows. Below it sits the 50% retracement and 200 day moving average at 1.2688/76”.