GBP/USD neutral-to-bullish near term – Commerzbank

Cable’s near term outlook stays neutral to bullish, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.

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. For now, it remains short term bid while trading above the April 21 low at 1.2760. We will remain medium term bullish while the currency pair stays above the 200 day ma at 1.2607. Around the 1.3000 mark the currency pair is likely to run out of steam, however, at least temporarily”.

“Below 1.2608 would trigger a slide back to 1.2515, the April 18 low and the 1.2347 February low”.