FXStreet (Edinburgh) - Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees potential for further GBP strength.
“GBP/USD has eroded the 6 week downtrend, drawn from the 1.6996 May peak, it is attempting to resume its upmove. This is unexpected but yesterdays move looks directional and for now we will go with the upside”.
“Dips lower are indicated to terminate ahead of 1.6850 for an attempt on the 1.6996 recent high and the 1.7041/51 2009 high, 2005 low”.
“Below 1.6850 would alleviate immediate upside pressure but only below 1.6672 (15 April low) will negate it”.