GBP/USD rebound could extend to 1.4233/1.4373 – Commerzbank

In light of the recent price action in Cable, Karen Jones, Head of FICC Technical Analysis at Commerzbank, believes it could rebound to the 1.4233/1.4373 area.

Key Quotes

“GBP/USD the 1.3836 February 2016 low has held for 3 days now and produced a much deeper rebound that we suspect may retest the 1.4233/1.4373 key resistance (recent high and 200 week ma). Here it should start again fail however”.

“Failure here should provoke a deeper sell off back to the 1.3658 September peak. Key medium term support is the 1.3372 2016-2018 uptrend. We continue to view 1.4345 as an interim top for the market and look for further weakness”.

“Above 1.4400, the April 2015 low can be seen at 1.4568”.