GBP/USD scope for a test of 1.2776 – Commerzbank

In light of the current upside momentum, Cable could attempt a visit to 1.2776, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD has maintained upside pressure and currently we remain unable to rule out 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. We note the TD perfected set up on the 240 minute chart and would prefer to buy on dips, dips lower are indicated to hold circa 1.2490/00”.

“The market is bid above the 55 day ma at 1.2416 and the near term risk remains on the topside. We suspect that prices will need to go sub 1.2250 in order to alleviate immediate upside pressure. Support at 1.2250 guards the 1.1988/80 recent low”.