GBP/USD negative below 1.3338/43 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable is now expected to visit 1.2969.

Key Quotes

“GBP/USD continues to falter at the 3 rd August high at 1.3267. Directly overhead lies the recent October high and the 50% retracement at 1.3338/43. While capped here we will maintain a negative bias and target the 1.2969 2016-2017 uptrend line. This is the break down point to the 1.2830 38.2% retracement and the 1.2575 50% retracement. The currency pair has recently failed at the 1.3515 2014-2017 downtrend and is thus viewed negatively”.

“Above 1.3343 (50% retracement) would trigger a deeper recovery to potentially 1.3417/1.3523, the 61.8% and 78.6% Fibonacci retracement levels”.

“A close above the 1.3658 September peak would open the way to the 1.3836 February 2016 low and the 50% retracement at 1.4341”.