GBP/USD well supported in the mid-1.3100s – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested Cable remains well supported in the mid-1.3100s for the time being.

Key Quotes

“GBP/USD is finding nearby support offered by the 55 day ma at 1.3156 and we remain unable to rule out a retest the top of the range. We view the September high at 1.3443 as an interim high. Only if it and the late June high at 1.3534 were to be overcome would we neutralize our medium term negative outlook”.

“Below the 55 day ma at 1.3156 our target remains the 1.2797/50 July low and the long term Fibonacci support”.

“While 1.3443 caps, the medium term focus will remain on the 1.2797/50 July low and the long term Fibonacci support. A close below here will be regarded as very negative and target 1.2060”.