GBP/USD could test 1.3287/94 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable could attempt a test of the 1.3287/94 band.

Key Quotes

“GBP/USD held steady again yesterday and appears to be consolidating recent gains. Last weeks low of 1.2957 was accompanied by a divergence of the daily RSI. Directly below here lies Fibonacci support at 1.2918 (50% retracement of the move up from 2016) and we are seeing some profit taking here. We would allow for recovery to the 1.3287/94 55 day ma and channel resistance”.

“Above 1.3363, the 9 th July high would imply a deeper corrective phase to the 1.3470/1.3500 area and there is scope for the 1.3585 200 day ma”.