GBP/USD: Consolidation continues - Commerzbank

Karen Jones, analyst at Commerzbank, notes that the GBP/USD pair has continued to consolidate above the 200 day ma at 1.2975 as the erosion of the 20 day ma last week was not sustained and the market is consolidating.

Key Quotes

“Above 1.3217 (25th January high) suggests scope up to the 1.3351/82 resistance. Below the 200 day ma lies the 1.2942 55 week ma and the double Fibo retracement at 1.2900/1.2895, this is pretty solid support that is expected to hold the downside. This guards the recent low at 1.2772.”

“The market recently reached 1.3382 before failing. Should the 55 week ma hold, our overall target remains the 1.3552 200 week ma.”

“Below 1.2772 we would allow for losses to the 1.2669/62 15th January low and August low and possibly the 1.2609/78.6% retracement.”