GBP/USD targets 1.2776 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s down move could be over, shifting the focus on a potential test of the 1.2770 area.

Key Quotes

“GBP/USD has eased back and so far held the 55 day ma at 1.2428. The intraday Elliott wave counts are positive and we suspect that the corrective move has run its course for now and would allow for further strength to the 1.2776 December high. Between here and 1.2836 lies several Fibonacci retracements and major resistance and we suspect that it will struggle here. We note a TD perfected set up on the 240 minute chart and would prefer to enter longs on a dip”.

“The market is bid above the 55 day ma at 1.2428. We suspect that prices will need to go sub 1.2250 in order to alleviate immediate upside pressure. Support at 1.2250 guards the 1.1988/80 recent low”.