In view of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, Cable could extend the upside as long as the 1.2400/1.2365 band underpins.
Key Quotes
“GBP/USD rapidly bounced off the 61.8% retracement at 1.2196, neutralising our forecast. The rally is approaching the 1.2713 200 day ma and shortly above here we find the 55 week ma sat 1.2753 and the 1.2784 June high. We suspect that these will hold, but while dips lower hold over 1.2400/1.2365 it will remain capable of further upside probes. The short term up channel lies at 1.2222″.
“1.2365 guards 1.2222 and 1.2196/94″.
“Above 1.2785 targets the 200 week ma at 1.3156″.
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