GBP/USD: Rallying higher - Commerzbank

Karen Jones, analyst at Commerzbank, points out that the GBP/USD has challenged the 1.3217 recent high and the 55 week ma at 1.3223, and is now knocking on the door of the 1.3298/September 2019 high representing a key band of resistance and they would allow for initial failure in this vicinity.

Key Quotes

“A close above 1.3300 would introduce scope to the 1.3610 200 week ma. Dips lower will find an accelerated uptrend at 1.3078 ahead of interim support at 1.2993 (200 day ma) and 1.2968, last weeks low. This guards the recent low at 1.2772.”

“Below the 1.2739/61.8% retracement we would allow for losses to the 1.2669/62 15th January low and August low and possibly the 1.2609/78.6% retracement.”