GBP/USD upside seen struggling around 1.3160 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the upside should find strong resistance in the 1.3160 area.

Key Quotes

“Last week GBP/USD recovered off the 1.2775/77 support area and we have seen a rebound into 1.30-1.31 zone as we suspected. The near term uptick is expected to terminate ahead of the 78.6% retracement at 1.3162, just ahead of here lies the 1.3126 July 18 high”.

“The 1.2775/59 support zone consists of the December 2016, late April and late May lows. Below it sits the 50% retracement and 200 day moving average at 1.2688/69”.

“A rise above the 1.3267 current August high would put the 1.3443/1.3502 September 2016 high and the 2009 low on the cards”.