GBP/USD: Poised to extend its correction lower, next support at 1.4090/80 – Commerzbank

GBP/USD has been consolidating around 1.41. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects cable to continue correcting lower – with the next stop at the 1.4090 level.

Sterling to restore the upside above 1.4250

“GBP/USD’s immediate outlook is neutral to slightly negative as the pair continues to consolidate below the recent highs and the near term risk of a deeper corrective sell-off remains.”

“Only a close above the 1.4250 level will restore upside pressure. Above here will target the 1.4377 the 2018 high.” 

“Should 1.4250 hold it is possible that 1.4090/80 will be retested. Failure here should refocus attention on nearby support at 1.4000/18. Below here, the uptrends lie at 1.3908 and 1.3976.”