GBP/USD faces strong support at 1.3060 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s upside is expected to struggle around 1.3060.

Key Quotes

“Sterling last week broke above the 1.30 psychological resistance, but was stopped in its tracks by 1.3060 the 29th September high. The new high has not been confirmed by the RSI and we note the 13 count on the daily chart. The market is likely to ease back/consolidate very near term”.

“While above 1.2776/71 and upside bias remains for scope to the 1.3443 September 2017 high”.

“The market needs to go back below the April 21 low at 1.2760/58 to negate upside pressure completely. This would introduce scope to the 200 day ma at 1.2596”.