GBP/USD now facing 1.3445 – Commerzbank

In light of recent price action, Cable could now test the 1.3440 area, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD strong recovery from the 20 day ma and cloud at 1.3212/16 has left the market to face 1.3445, the 2014-2017 downtrend. We look for failure and weakness back to the 1.3103 2016- 2017 uptrend”.

“The 1.3103 2014-17 uptrend represents the break down point to 1.2830/1.2774, the 38.2% retracement and August low, and the 1.2575 50% retracement”.

“Above the 1.3445 downtrend will see a rally to the 1.3658 September high”.