GBP/USD tested 1.4000, what’s next? - Commerzbank

Karen Jones, Analyst at Commerzbank, notes that the GBP/USD pair regained 1.40 handle finally, but the bulls could struggle to make a sustained move beyond the last.

Key Quotes:

“GBP/USD has reached 1.4000, various intraday divergences suggest caution. We note the 13 count on the 60minute, 240 minute, daily and weekly chart and are wary of failure here. The market stays immediately bid above the 1.3521 2 month uptrend. We would allow for a retracement to 1.3770/1.3630. Critical support is the 1.3350 2016- 2018 uptrend.”

“Below the 1.3350 would negate the upmove.“

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