Karen Jones, analyst at Commerzbank, explains that the GBP/USD pair has eased back to and recovered from the 55 day ma last week as it has held over the 200 day ma at 1.2980 and for now suggest that they will continue to favour the topside.

“The market recently challenged the 1.3363 July 2018 high, reaching 1.3382 before failing. Provided that dips lower are contained by the 200 day ma, our overall target remains the 1.3563 200 week ma. Below the 200 day ma lies the double Fibo retracement at 1.2900/1.2895. This guards the recent low at 1.2772.”