At the time of writing, GBP/USD is trading near 1.3187, the fresh high since September 04 but Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the cable to fail in the 1.3310-1.3422 band.
Key quotes
“GBP/USD has maintained upside pressure following the break above the late January, February and March highs at 1.3201/10. However, we believe this is only an a-b-c pattern and we are at the top of a short-term channel and we have the 78.6% retracement at 1.3310. Directly above here lies key resistance offered by the 1.3422 multi-year downtrend and, if seen, we would expect this to again cap and provoke failure. This is reinforced by the 1.3515 December 2019 high.”
“Nearby support is offered by the 55-day moving average at 1.3008 and also by 1.2911 the five-month uptrend.”
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