GBP/USD: A close above 1.3187 is pivotal – Commerzbank

In the view of Karen Jones, an analyst at Commerzbank, the GBP/USD pair is looking northwards on the UK election, with the bias to be confirmed on a close above 1.3187 May high.

Key Quotes:

“GBP/USD last week reached its 5-year downtrend at 1.3156. Also found in this vicinity is the 50% retracement of the move down from 2018 at 1.3167 and the 1.3187 May high and this is tough resistance and we look for the market to fail here. We note the daily RSI has not confirmed the new high.

Minor support is offered by 1.3013 October high and the 20-day ma at 1.2951 and this guards the 1.2768 8th November low. Failure at 1.2768 would probably see a slide to the 200-day ma at 1.2696. This guards the 1.2582 September high. Below 1.2582 lies the 1.2584 uptrend line. It guards 1.2196/94.

A close above 1.3187 will open the way to the 1.3382 2019 high and potentially the 61.8% retracement at 1.3450.”