GBP/USD could slip back to 1.3927 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable could grind lower to the 1.3927 level if 1.3997 is cleared.

Key Quotes

“GBP/USD is under pressure and has started to erode the 55 day ma at 1.3997. This is now exposed and failure here targets the five month uptrend line at 1.3927. Further support can be seen between the February and the current March lows at 1.3765/12 and also at the 1.3658 September peak”.

“The market has again recently failed just ahead of the 1.4272 200 week ma and the 1.4340/45 recent high and long term Fibonacci retracement and while capped here a negative bias will remain entrenched”.

“The 1.4345 high guards the 1.4565 April 2015 low and the 1.5000 region”.