GBP/USD headed to psychological resistance at 1.4000? - Commerzbank

Karen Jones, Analyst at Commerzbank, notes that the GBP/USD pair remains poised to challenge the psychological barrier at 1.4000, but markets seem wary of failure at the last.

Key Quotes:

“GBP/USD spiked higher on Tuesday, various intraday divergences suggest consolidation ahead of a move to psychological resistance at 1.40. We note the 13 count on the weekly chart and are wary of failure here. The market stays immediately bid above the 1.3512 2 month uptrend. We would allow for a retracement to 1.3730/1.3600. Critical support is the 1.3318 2016-2018 uptrend.”

“Below the 1.3318 would negate the upmove.“

“13 count on the weekly chart implies that the market will struggle to overcome 1.40.”