GBP/USD still targets the 1.2970 area medium term – Commerzbank

There is still scope for Cable to test the 1.2970 area in the medium term, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD probably ended a minor Elliott wave abc correction at the 1.3338 mid-October high, made close to the 50% retracement at 1.3343, and medium term still targets the 1.2969 2016-2017 uptrend line. This is the break down point to the 1.2830 38.2% retracement and the 1.2575 50% retracement. The currency pair has recently failed at the 1.3515 2014-2017 downtrend and is thus viewed negatively. It is immediately negative while capped by the 20 day ma at 1.3235 and the 3 rd August high at 1.3267”.

“Above 1.3343 (50% retracement) would trigger a deeper recovery to potentially 1.3417/1.3523, the 61.8% and 78.6% Fibonacci retracement levels”.

“A close above the 1.3658 September peak would open the way to the 1.3836 February 2016 low and the 50% retracement at 1.4341”.