GBP/USD scope for a test of 1.3658 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted there is still room for Cable to re-visit the area of 2017 tops near 1.3660.

Key Quotes

“GBP/USD held steady yesterday following its break above major resistance (2014-2017 downtrend) at 1.3445, we have seen a weekly close above the 2014-2017 downtrend. The move above the downtrend has introduced scope to the 1.3658 September high. It stays immediately bid above the 1.3338 mid October high”.

“Only below 1.3338 would alleviate immediate upside pressure and allow for weakness back to the 1.3130 2016-2017 uptrend”.

“The 1.3130 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”.