GBP/USD could slip back and test the 1.2895/85 band – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable could retreat to the 1.2895/85 band following last Friday’s uptick.

Key Quotes

“GBP/USD rallied higher at the end of last week to test the 55 day ma at 1.3016 and the 23.6% retracement at 1.3066, these have again held and we would allow for a retest of support at 1.2895/85. It increasingly looks to have based from a slightly longer term perspective at 1.2662. Above 1.3066 we look for a challenge of the 1.3173 July 30 high and the 1.3363 9 th July high. Minor resistance below this level comes in at the 1.3102 late June lows. A move above the 1.3363 July high would imply a deeper corrective phase to the 1.3473/1.3534 June high and 200 day moving average”.

“Intraday the cross stays bid above 1.2785. Below 1.2785 will imply a retest of the 1.2662 August low”.