GBP/USD probable top at 1.2940 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable could have carved a top in the 1.2940 region.

Key Quotes

“Following the BoE rate decision and latest economic forecast last week, Sterling came under a bit of downside pressure. Sterling has recently failed to break above the 55 week ma at 1.2941, and the 1.30 psychological resistance, and we suspect has topped here. The recent high was accompanied by a divergence of the daily RSI but the market needs to go back below the April 21 low at 1.2760 to negate upside pressure completely. This would introduce scope to the 200 day ma at 1.2596”.

“A close above 1.30 would introduce scope to the 1.3443 September 2016 high”.