GBP/USD: Near term consolidation likely – Commerzbank

In view of Karen Jones, analyst at Commerzbank, GBP/USD’s outlook is positive after at the end of last year it reacted back to and recovered from the 55 day ma at 1.2977 currently.

Key Quotes

“The low on the 23rd December was 1.2908 and while above here we will assume an upside bias to retest the December high at 1.3515. Very near term the market has halted at a minor 61.8% retracement at 1.3283 and we would allow for a near term retracement towards 1.30ish.”

“The December high at 1.3515 guards the September 2017 high and 38.2% retracement (of the move down from 2014) at 1.3658/68. This guards the more important 1.3918 2007 -2020 downtrend.”

“Failure at the 1.2908 support would put the 200 day moving average at 1.2690 back on the plate.”