GBP/USD: A move to 1.2865 is not ruled out – Commerzbank

In spite of the recent recovery, Cable could still slip back and test the 1.2865 level, suggested Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

Key Quotes

“GBP/USD saw a fairly decent recovery yesterday. We remain unable to dismiss a slide to the 1.2865 uptrend. On route lies the December low at 1.2908. A close above 1.3118 (17th January high) is required to alleviate immediate downside pressure and retarget the Fibonacci resistance at 1.3285.”

“Failure at the 4 month uptrend at 1.2865 would put the 200 day moving average at 1.2688 back on the plate.”