GBP/USD upside pressure mitigated below 1.2760 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted Cable needs to break below 1.2760 in order to alleviate the upside pressure.

Key Quotes

“Last week Sterling reached the 55 week ma at 1.2966, where it is consolidating and we also note the presence of a TD perfected set up on the daily chart, this suggests some caution near term. We also note the complex divergence of the daily RSI but the market needs to go back below the April 21 low at 1.2760 to alleviate upside pressure. We will remain medium term bullish while the currency pair stays above the 200 day ma at 1.2605. Around the 1.3000 mark the currency pair is likely to run out of steam, however, at least temporarily”.

“Below 1.2606 would trigger a slide back to 1.2515, the April 18 low and the 1.2347 February low”.