GBP/USD attention remains on 1.3050 – Commerzbank

Cable’s attention is now shifted to the mid-1.3000s, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD the recent October high and the 50% retracement at 1.3338/43 continue to act as a short term ceiling for the market. Focus remains on the 1.3052 support line and the 1.3022 2016-2017 uptrend line. This is currently holding and the market has rebounded from here near term – we are unable to rule out a deeper retracement to 1.3250 ahead of further failure. It represents the break down point to 1.2830/1.2774, the 38.2% retracement and August low, and the 1.2575 50% retracement”.

“Above 1.3343 (50% retracement) would trigger a deeper recovery to potentially 1.3417/1.3515, the 61.8% and the 2014-2017 downtrend”.