GBP/USD scope for a test of 1.3012 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable could climb to the 1.3012 area.

Key Quotes

“Sterling has eroded key short term resistance offered by the channel at 1.2620 and the 200 day ma at 1.2623, and it has also overcome the 1.2707 January high and the 1.2836 Long term Fibo resistances. The break looks directional and we will assume an upside bias above 1.2623 (200 day ma). We would allow for allow for further strength to the 55 week ma at 1.3012”.

“Below 1.2623 would trigger a slide back to 1.2515, yesterdays low and the 1.2347 February low”.