GBP/USD short-term correction higher could extend further – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the ongoing correction higher in Cable could still have legs.

Key Quotes

“GBP/USD last week held the initial test of the July low at 1.2957, as expected. The pullback from here is pretty lack lustre so far and we are not convinced that the short term correction higher is over. A move above 1.2957 would allow for a challenge of the 1.3173 July 30 high. Minor resistance below this level comes in at the 1.3049 and 1.3102 late June lows. Intraday the cross stays bid above 1.2795. Below 1.2795 will imply a retest of the 1.2662 August low”.

“A move above the 1.3363 July high would imply a deeper corrective phase to the 1.3473/1.3559 June high and 200 day moving average”.