GBP/USD potential test of 1.3049 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees there is room for a potential test of the mid-1.3000s.

Key Quotes

“GBP/USD has recently eroded the 1.3267 August high, this was also the approximate 50% retracement of the move down from June 2016 (1.3255). It has not sustained the break and the emphatic rejection points to possible failure and a slide back to 1.3049 the May high. Dips are indicated to hold circa 1.3070/35. This guards minor support at 1.3019 ahead of the 1.2837 longer term channel”.

“Above1.3329 should be enough to trigger another leg higher to the 1.3443/6 September 2016 high”.