GBP/USD scope for a test of 1.2593 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted Cable could attempt a visit to 1.2593 following the recent price action.

Key Quotes

“The market has bounced off its 55 and 100 day moving averages at 1.2411/05, it looks set to challenge the 1.2593 8 th February high. This guards the top of the channel at 1.2683. Only above 1.2683 would allow for further strength to the 1.2776 December high. Between here and 1.2836 lies several Fibonacci retracements and major resistance and we suspect that it will struggle here”.

“We suspect that prices will need to go sub 1.2250 in order to alleviate immediate upside pressure and trigger losses to the 1.1988/80 recent low. Immediate support is the 1.2347 February low”.