In light of the recent price action, Cable could now attempt another visit to the key 1.30 handle, suggested Karen Jones, Team Head FICC Technical Analysis at Commerzbank.
“GBP/USD continues to recover from the 1.2764/ 23.6% retracement. It is well placed for another attempt at the psychological resistance at 1.3000. Directly above here we have the 200 week ma at 1.3116 and the 1.3187 May high and these remain our short term targets, we look for the market to be capped here”.
“Failure at 1.2764 will see a slide to the 200 day ma at 1.2702. This guards 1.2582 (September high). Below 1.2582 lies the 1.2448 uptrend. The uptrend guards 1.2196/94”.