GBP/USD initial test seen at 1.2579/81 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, expects the initial test of Cable’s upside momentum to be around 1.2580.

Key Quotes

“Sterling held over 1.2460 for 3 times last week and is well placed to tackle the 1.2579/81 February 9^th high, and the 78.6% retracement and we would allow for this to hold the initial test. It remains the break up point to the 1.2646 top of the channel. The market is immediately bid above the 20 and 55 day ma at 1.2417/1.2397”.

“Only above the 1.2707 February high would allow for further strength to the 1.2776 December high to be seen. Between it and 1.2836 lie several Fibonacci retracements and major resistance and we suspect that it will fail there”.