FXStreet (Edinburgh) - Karen Jones, Head of FICC Technical Analysis at Commerzbank, notes the pair could struggle to advance further from current levels.
“GBP/USD charted an outside day to the topside yesterday –but only just!”.
“The new high has not been confirmed by the daily RSI. We cannot rule out further stabs higher but look for the market to now struggle”.
“Above 1.7205 will trigger a move to the 50% retracement at 1.7331 (of the move down from the 2007 peak)”.
“Initial support lies at 1.7061, the 20thJune high. Given that we also have a Fibonacci extension coming in just above 1.7300 we favour profit taking in this vicinity and are loathe to chase this higher”.