GBP/USD: The 200-day ma caps the attempts to resume the bull trend – Commerzbank

The GBP/USD pair is trying to resume the bull trend though is being capped by the 200-day ma at 1.2687, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

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Key quotes

“GBP/USD recently failed at the 78.6% retracement at 1.2818 (of the move down from the March peak). Dips lower have found initial support at 1.2468/86 ahead of the short-term uptrend at 1.2428, which is expected to hold the downside.” 

“It is possible that the market is already attempting to reassert its bull trend but it is struggling with its 200-day ma at 1.2687.”

“A daily chart close above the 78.6% Fibonacci retracement at 1.2818 is needed to target the 200-week ma at 1.2924.”