GBP/USD to find support circa 1.3475 - Commerzbank

Karen Jones, Analyst at Commerzbank, offers insights on the GBP/USD technical set up for this week.

 Key Quotes:

“GBP/USD is consolidating below recent highs at 1.3614/58, made in September and January. Having said that, it has recently broken above the 2014-2017 downtrend and this has introduced scope to the 1.3658/71 September high and double Fibonacci retracement. The cross is bid above the 1.3300 level. Intraday dips lower should find initial support circa 1.3475/32.”

“The 1.3300 support guards the 1.3265 2014-17 uptrend – this represents the breakdown point to 1.2830/1.2774, the 38.2% retracement and August low, and the 1.2575 50% retracement.”

“Short Term Trend (1-3 weeks): The 2014-2017 downtrend line has been eroded to target the 1.3658/71 double Fibo. Above here would target 1.3836 the February 2016 low.”