GBP/USD poised for further gains – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable could extend the current upside to levels above the 1.3600 handle.

Key Quotes

“GBP/USD held steady yesterday and remains upside corrective. This correction higher looks set to extend further than we originally thought and we should allow for a rally to 1.3534 and potentially 1.3638, the 38.2% retracement of the recent sell off. We have exited our shorts and reinstated tiny long positions”.

“The market last week sold off towards and recovered just ahead of the 1.2750/78.6% retracement of the move from 1985 to 2007”.