GBP/USD: upside stance above 1.2618 – Commerzbank

Cable should keep the upside bias unchanged while above 1.2618, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“Sterling continues to hold steady as it attempts to absorb its recent sharp rally. The market has eroded key short term resistance offered by the channel, the 200 day ma, the 1.2707 January high and the 1.2836 Long term Fibo resistances. The break looks directional and we will assume an upside bias above 1.2618 (200 day ma). We would allow for allow for further strength to the 55 week ma at 1.3012”.

“Below 1.2620 would trigger a slide back to 1.2515, yesterdays low and the 1.2347 February low”.