GBP/USD short-term resistance at 1.2628 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted Cable’s outlook stays negative in the near term, while the initial hurdle lines up near 1.2630.

Key Quotes

“Sterling has eroded the 55 and 100 day moving averages. It is on the defensive, however we note the 13 count on the 60 minute chart and would allow for a very near term rebound ahead of further losses. Key short term resistance is the channel at 1.2628 and the 200 day ma at 1.2634. Below 1.2347 (Feb low) would cast attention back to the 1.2110 recent low. This is considered to be the last defence for the 1.1988 January low”.

“Key near term resistance is the top of the channel at 1.2628. 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”.