Pound May Climb to $1.70 on Dollar Weakness: Technical Analysis

(Bloomberg) -- The pound may strengthen to $1.7050 in the “medium term” amid weakness in the U.S. currency, according to Commerzbank AG, which cited trading patterns. “Pound-dollar has sold off to its 50 percent retracement of the recent leg higher,” Karen Jones, a technical analyst in London, wrote today in a report, citing Fibonacci analysis. “The move lower is regarded as corrective as we look for dips to be contained by the $1.6320-$1.6250 band for an upside bias to be maintained,” she said. “Add to longs on further weakness to $1.6350,” Jones said. A long position is a bet an asset will appreciate in value.

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