GBP/USD negative below 1.3338/43 – Commerzbank
Karen Jones, Head of FICC Technical Analyst at Commerzbank, noted Cable’s immediate outlook stays negative as long as the 1.3338/43 band caps.
Key Quotes
“GBP/USD’s immediate outlook stays negative while capped by the 1.3338 mid-October high and the 50% retracement at 1.3343, and medium term still targets 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. It is immediately negative while capped by the 20 day ma at 1.3218 and the 3rd August high at 1.3267”.
“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”.