Monday, July 25, 2011

Commerzbank: GBP/USD will rise above $1.65

British pound gained last week about 130 pips versus its US counterpart consolidating in the $1.6300 area.

Technical analysts at Commerzbank believe that GBP/USD has broken up the key short-term resistance levels – its 3-month downtrend line at $1.6211, 55-day MA at 1.6204 and the 50% Fibonacci retracement at $1.6265.

The bank now expects sterling to rise to the previous 2010-2011 uptrend line at $1.6395 and 78.6% retracement of the decline from April and May maximums at $1.6540/47.

daily gbpusd 13-49

Chart. Daily GBP/USD

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