Karen Jones, analyst at Commerzbank, suggests that as the GBP/USD pair once again is approaching the 1.3000 level, it remains bid near term.
“Initial support is the near term up trend at 1.2838. We regard the recent move to 1.2444, charted in January, as the end of the down move and we look for gains to the 200 day ma at 1.3075. Above here would re-target the July, September and October highs at 1.3258/1.3363.”
“Dips will find support at the 55 day ma at 1.2773 and 1.2669/62, the August low. Only below 1.2444/25 targets the 78.6% retracement at 1.2109.”
“Only a rise above the July, September and October highs at 1.3258/1.3363 would put the June high at 1.3473 on the cards.”