GBP/USD: Potential top in place? – Commerzbank

The 1.2950 region is seen holding the topside following the recent price action in Cable, noted Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

Key Quotes

“GBP/USD has not sustained the initial break of the December low at 1.2905, and it is possible that this was the end of an ‘a-b-c’ correction, but it also looks like a potential top. We are biased towards the latter scenario, in which case we should see the 55 day ma at 1.3056 ideally hold the topside. Failure at 1.2905 put the 55 week ma at 1.2799 and the 200 day moving average at 1.2690 back on the plate.”

“Minor resistance is seen at the 1.2954 mid-January low and then along the 55 day ma at 1.3056.”