Axel Rudolph, analyst at Commerzbank, suggests that GBP/USD’s advance has taken the cross to the May and June lows at 1.2506/59 and between these levels and the mid-July high at 1.2580 the cross short-term consolidated for a day or two.

“Further up strong resistance between the seven month resistance line, 200 day ma and the June high at 1.2689/1.2784 remains in sight. Now that a weekly Friday chart close above the 1.2310 August high has been seen, we changed our weekly forecast to a bullish one. Minor support below the 55 day moving average and the September 12 low at 1.2300/1.2283 is seen between the early and mid-August lows at 1.2080/15 and major support at the 1.1958 current September low. A slip through the 1.1958 recent low would put the 1.1491 October 2016 low (according to CQG) on the cards.”