In view of Axel Rudolph, Senior Technical Analyst at Commerzbank, Cable should allow for extra gains above 1.2705.
“Sterling based at 1.2110 and reached the 55 day ma at 1.2378. Above here initial resistance is seen at the 1.2431/40 January 5 high and the two month resistance line. Further up sits the 1.2581 February 9 th high. However only above the 1.2705 February high would allow for further strength to the 1.2776 December high to be seen. Between it and 1.2836 lie several Fibonacci retracements and major resistance and we suspect that it will fail there”.
“The recent low at 1.2110 is considered to be the last defence for the 1.1988 January low and the bottom of the 5 month range at 1.1919”.