GBP/USD: Scope for a substantial recovery to the 1.4018 mark – Commerzbank

GBP/USD has reversed just ahead of the initial target of analysts at Commerzbank at 1.3592/71. The pair has recaptured the 1.37 line and rallies could reach the pivot of 1.4018.

Potential for the 200-week ma at 1.3146 on a break below 1.3571

“Rallies will find initial resistance at the 200- day ma at 1.3795 ahead of the 1.3816 accelerated downtrend. This guards the 55-day ma at 1.3857 and the more important 1.3984/1.4018 medium-term pivot, which is expected to contain the topside.”

“Below 1.3571 would introduce scope longer term for a move back to the 200-week ma at 1.3148. We have a 50% retracement level at 1.3457 of the move up from September 2020.”