GBP/USD still no signs of reversal – Commerzbank
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable could still extend the upside to the 1.2798/1.2866 band.
Key Quotes
“GBP/USD continues to inch higher following the break above the 55 day ma. The charts continue to suggest that upside scope is limited (we now have 2 TD perfected set ups on the 240 minute chart). However as yet there is no sign of reversal and we should allow for scope to test the 1.2798/1.2866 area, made up of the July and August lows and 23.6% retracement of the move down from 2014. This guards the more important 1.3446 5th September peak”.
“Only a drop below the 1.2393 level (uptrend) would put the 1.2090/85 October 11 and 25 lows on the map”.
“Failure at 1.2085 would mean a continuation of the descent and should trigger losses to the October low at 1.1938 (according to CQG). Below it lies the May 1985 low at 1.1855. We regard the recent peak at 1.2674 as the end of the corrective phase and look for further losses”.