Karen Jones, analyst at Commerzbank, notes that the GBP/USD pair continues to hold steady as the pair has held over the 3 month uptrend at 1.3055 and 200 day ma at 1.2980 and for now 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. Below 1.2772 we would allow for losses to the 1.2669/62 15th January low and August low and possibly the 1.2609/78.6% retracement.”