GBP/USD bid above 1.2416/1.2391 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted Cable stays bid while above the 1.2416/1.2391 band.

Key Quotes

“Sterling is approaching the 1.2579/81 February 9 th high, and the 78.6% retracement and we would allow for this to hold the initial test. It remains the break up point to the 1.2648 top of the channel. The market is immediately bid above the 20 and 55 day ma at 1.2416/1.2391”.

“Only above the 1.2707 February high would allow for further strength to the 1.2776 December high to be seen. Between it and 1.2836 lie several Fibonacci retracements and major resistance and we suspect that it will fail there”.

“The recent low at 1.2110 is considered to be the last defence for the 1.1988 January low and the bottom of the 5 month range at 1.1909”.