GBP/USD: Strong near-term recovery towards the March high at 1.3201 – Commerzbank

GBP/USD soared on Wednesday and Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, looks at the 1.3201 March high after the cable moved above the 1.3085 mark. 

Key quotes

“GBP/USD has seen a pretty strong rebound from the 20-day ma and this has effectively neutralised the near-term outlook. It is immediately bid above the near-term uptrend at 1.2881.” 

“The move above 1.3085 implies that the market is capable of retesting the 1.3201 March high and the recent high at 1.3483. In this vicinity is the 1.3468 multi-year downtrend and if seen we would allow this to again hold.” 

“Below the uptrend lies 1.2814 the June high. Failure here will target 1.2709 the 200-day ma then 1.2445 and 1.2250/00.”