GBP/USD: Upside bias maintained by the near term uptrend – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that GBP/USD pair has eroded its initial target of the 200 day ma at 1.3061 in the past week and while underpinned by the near term uptrend, it stays bid and they are looking for gains to the 55 week ma at 1.3297.

Key Quotes

“Here we also find the July, September and October highs at 1.3258/1.3363. While we would allow for this to hold the initial test, there is scope for the 200 week ma at 1.3650 slightly longer term. We note the 13 count on the 240 minute chart and will attempt to buy the dip. A rise above the July, September and October highs at 1.3258/1.3363 would put the June high at 1.3473 on the cards.”

“Below the uptrend, dips will find support at the 55 day ma at 1.2782 and 1.2669/62, the August low.”