GBP/USD could attempt a test of 1.3173 – Commerzbank

Cable is seen shedding some ground ahead of a potential test of 1.3173, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD has eroded the July low at 1.2957 and shot higher to the 55 day ma at 1.3058. The intraday Elliott wave counts are implying a move to 1.2960/05 ahead of another leg higher, it increasingly looks to have based. We would then allow for a challenge of the 1.3173 July 30 high and the 1.3363 9 th July high. Minor resistance below this level comes in at the 1.3102 late June lows. A move above the 1.3363 July high would imply a deeper corrective phase to the 1.3473/1.3548 June high and 200 day moving average”.

“Intraday the cross stays bid above 1.2795. Below 1.2795 will imply a retest of the 1.2662 August low”.