GBP/USD neutralising very near term – Commerzbank

Cable’s upside momentum should find strong resistance in the 1.2775/1.2828 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“The market towards the end of last week sold off to and recovered from the 50% retracement (1.2579) and is currently bouncing from here. The rally will find initial resistance offered by the range above 1.2775/1.2828. The previous range 1.2775-1.3060 should now act as formidable nearby resistance”.

“Below 1.2579 there is scope for an extension to its 200 day ma at 1.2551 and 1.2517 9 month support line. Below here will target 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 1.2775/1.2828. But only above 1.3060 would target the 1.3446 September 2016 high”.