In light of the recent price action, Cable has now shifted its focus to the 1.3360 area, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.
“GBP/USD busted through the 1.3214 July 26th high and attention is on the 1.3363 July high. A move above the 1.3363 July high would imply a deeper corrective phase to the 1.3473/1.3520 June high and 200 day moving average”.
“The market will stay bid while dips hold over the 55 and 20 day moving averages at 1.3010/25. We have a short term uptrend at 1.2883 which maintains immediate upside pressure”.
“Intraday the cross stays bid above 1.2785 (5 th September low). Below 1.2785 will imply a retest of the 1.2662 August low”.