GBP/USD bullish above 1.2601 medium term – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s outlook stays on the bullish side while above 1.2601 (200-day sma).

Key Quotes

“Sterling last week reached the 55 week ma at 1.2966, where it is consolidating, this suggests some caution near term. The recent high was accompanied by a divergence of the daily RSI but the market needs to go back below the April 21 low at 1.2760 to alleviate upside pressure. We will remain medium term bullish while the currency pair stays above the 200 day ma at 1.2601. Around the 1.3000 mark the currency pair is likely to run out of steam, however, at least temporarily”.

“Below 1.2601 would trigger a slide back to 1.2515, the April 18 low and the 1.2347 February low”.