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Axel Rudolph, analyst at Commerzbank, notes that the GBP/USD pair bounced off the 200 day moving average at 1.2958 at the end of last week, which came in slightly above the 1.2934 2019 support line.

Key Quotes

“We look for the 1.3185/97 April and current May highs to be retested. The 61.8% Fibonacci retracement also sits between these levels. The cross will need to regain the 1.3217 January 25 high to introduce scope to the 1.3351/82 resistance area, made up of the February and March highs, where we expect it to struggle.”

“Failure at the 200 day moving average and support line at 1.2958/34 would lead to the 1.2865 April low being eyed which in turn protects the February low at 1.2772.”

“Below 1.2772 we would allow for losses to the 1.2669 January 15 low and August low and possibly the 1.2609 78.6% Fibonacci retracement.”