GBP/USD: Upside capped - Commerzbank

Karen Jones, analyst at Commerzbank, points out that the GBP/USD pair has tested and so far held at the 1.2763/72 resistance (the 7th June high and February low) and market will have to overcome this in order to generate some further upside interest.

Key Quotes

“This will target the 200 day ma at 1.2926, but we are looking for this to then cap the topside. Meanwhile we would allow for a possible near term pull back towards the 1.2680/50 region ahead of another leg higher.”

“Below 1.2532 would target the 1.2444 December 2018 low. This is the last defence for 1.2108, the 78.6% retracement of the move up from 2016.”