GBP/USD: Risk of a deeper corrective sell-off to 1.3915 remains – Commerzbank

GBP/USD is hovering under 1.42. As cable is sidelined below some tough resistance, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, highlights the risk of a deeper correction lower to the uptrend at 1.3915.

Only a close above the 1.4250 level will restore upside pressure

“GBP/USD is sidelined as the market continues to consolidate below the recent highs and the near term risk of a deeper corrective sell-off remains.” 

“It is possible that 1.4090/80 will be retested. Failure here should refocus attention on nearby support at 1.4000/18. Below here lie the uptrends lie at 1.3915 and 1.3983.”

“Only a close above the 1.4250 level will restore upside pressure. Above here will target the 1.4377 the 2018 high.”