GBP/USD up move seen struggling at 1.3535 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s bullish attempts are expected to fail around 1.3535.

Key Quotes

“GBP/USD correction higher has reached its initial corrective target and we have entered new short positions. The move higher is indicated to terminate circa 1.3535”.

“Beyond this we look for the market to head lower to the 1992-2016 support line at 1.2972/65 (this connects all the lows from 1992-2016). Below here lies the 1.2750/78.6% retracement of the move from 1985 to 2007, which is the last defense for the 1.0463 1985 low”.

“Rallies will find that the previous lows at 1.3837 (Feb low) and the 1.4005/15 (April and June low) will offer strong resistance. A downside bias will remain fully entrenched while below the 1.4080/50% retracement”.