GBP/USD could attempt a test of 1.2528 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, there is still scope for a test of the 1.2530 area.

Key Quotes

“GBP/USD’s rebound off to the 61.8% Fibo at 1.1982 is starting to erode the 55 day ma at 1.2408 and the 1.2422 resistance line. Directly overhead lies the 100 day ma at 1.2528 and we will allow for this also to be tested. While capped here, a negative bias will remain entrenched. We suspect that prices will need to go sub 1.2200/1.2165 however to alleviate immediate upside pressure. We note that the intraday Elliott count is positive and suggesting scope for 1.2620”.

“Support at 1.1980 guards 1.1775 and then 1.1481 the recent spike low”.