GBP/USD rally faces resistance at 1.3162 – Commerzbank

Cable’s ongoing up move should find initial resistance in the 1.3160 region, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD continues to recover off the 1.2775/77 support area. The move is expected to find initial resistance at the 78.6% retracement at 1.3162, and this guards the 1.3267 August high. Dips are indicated to hold circa 1.3050/10. Minor support lies at 1.2954 ahead of the 1.2810 longer term channel”.

“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 1.2688/76”.

“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”.