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GBP/USD has surged above 1.33 after bouncing from the 55-day ma at 1.3137. Nevertheless, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, still looks at the five-month uptrend at 1.3056 which remains key to sustain the upside pressure.

Key quotes

“GBP/USD sold off on Friday following the failure at tough resistance at the 1.3500/1.3540 recent high and December 2019 high. It has bounced from the 55-day moving average at 1.3137, but this has not been enough to restore the up move and, for now, the five-month uptrend at 1.3056 remains pivotal.” 

“Below the five-month uptrend would negate upside pressure and target 1.2855 2nd November low and the 200-day ma at 1.2752.”