GBP/USD looks set to consolidate near term - Commerzbank

Karen Jones, analyst at Commerzbank, explains that the GBP/USD pair last week rallied to and stalled at the 1.3000 level and looks set to consolidate near term.

Key Quotes

“The market recently reversed from a 5 month support line. We regard the slide to 1.2444 charted in January as the end of the down move and we look for gains to the 200 day ma at 1.3088. Dips will find initial support at the 55 day ma at 1.2778. Below 1.2444/25 targets the 78.6% retracement at 1.2109.”

“Only a rise above the July, September and October highs at 1.3258/1.3363 would put the June high at 1.3473 on the cards.”