GBP/USD needs to close above 1.3013/66 – Commerzbank

In light of the recent up move in Cable, the focus has now shifted to a close above the 1.3013/66 area, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD is starting to erode key short term resistance offered by the 55 day ma at 1.3013 and the 23.6% retracement at 1.3066. What we would like to see is a CLOSE above here. These levels are looking exposed”.

“The cross is increasingly looking to have based from a slightly longer term perspective recently at 1.2662. Above 1.3066 we look for a challenge of the 1.3173 July 30 high and the 1.3363 9 th July high. Minor resistance below this level comes in at the 1.3102 late June lows. A move above the 1.3363 July high would imply a deeper corrective phase to the 1.3473/1.3527 June high and 200 day moving average”.