GBP/USD a test of 1.2697 is not ruled out – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, has not ruled out a visit to 1.2697.

Key Quotes

“GBP/USD spent most of last week trading around its 55 day ma – it lies at 1.2435 and we are unable to rule out another run up to the top of the channel at 1.2697. The near term risk is that this will again hold. A close below the 55 day ma will introduce potential to the 1.2253 the 18th January low. The intraday Elliott counts remain negative and our bias is neutral to negative”.

“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”.

“Above 1.2700 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”.