GBP/USD to test the 200-DMA at 1.2684 after removing the 1.2517 20-DMA – Commerzbank

GBP/USD has just emerged above 1.25, up 0.25% on a day, amidst general US dollar weakness. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, targets the 1.2684 200-DMA after the initial resistance at 1.2517.

Key quotes

“GBP/USD has recovered off the 1.2247 mid-April low. Initial resistance is the 20-day ma at 1.2517 and this guards the 200-day ma at 1.2684 and we suspect this may hold the initial test. Above 1.2684 targets the 78.6% retracement at 1.2818 (of the move down from the March peak) and the 200-week ma at 1.2911.” 

“Below the 1.2247 support lies the 1.2203 channel and while above here we will assume an upside bias.”