Karen Jones, analyst at Commerzbank, suggests that they will continue to favour the topside for the GBP/USD pair after it recovered from the 55 day ma as it has held over the 200 day ma at 1.2980.
“The market recently challenged the 1.3363 July 2018 high, reaching 1.3382 before failing. Provided that dips lower are contained by the 200 day ma, our overall target remains the 1.3563 200 week ma.”
“Below the 200 day ma lies the double Fibo retracement at 1.2900/1.2895. This guards the recent low at 1.2772.”