FXStreet reports that GBP/USD is bouncing from the 200-day ma at 1.2717 and was last seen trading at 1.2847, up 0.1% on the day. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes that the cable has room to rise to 1.3070, but a failure here would allow for further losses to the 1.2250 area.

“GBP/USD saw a decent recovery yesterday from the 200-day ma at 1.2717, but the rally has yet to overcome any resistance of note.”

“Initial resistance lies at 1.3008 the mid-September high and we would allow for 1.3070. Ahead of here lies the 20-day ma at 1.2936. Should the market fail 1.3000/70, we would allow for further losses to 1.2445 and then 1.2250/00.”

“The 1.3070 level guards the 1.3201 March high and the recent high at 1.3483 and the 1.3522 downtrend.”