GBP/USD holds two-month downtrend at 1.3827 to resume its advance – Commerzbank

GBP/USD is bouncing higher near-term and Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, believes the cable may be ready to resume its up move.

Key quotes

“GBP/USD is seeing a small bounce higher – it has failed to maintain the break of its two-month uptrend (we have re-drawn it for now and it lies at 1.3827) and is currently underpinned by the 55-day ma at 1.3758.” 

“We are beginning to wonder if the market is ready to resume its up move and we are going to retry long positions? The six-month uptrend is not encountered until 1.3465.”

“Immediate overhead resistance is offered by the 20-day ma at 1.3945. Above here lies 1.4018 (last week's high), and this guards 1.4238/44 (the recent high).”