GBP/USD fails at the 1.38 200-DMA, strong support seen at the 1.3571 July low – Commerzbank

GBP/USD has failed on its initial test of the 1.38 200-day moving average (DMA). Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, highlights the levels to watch.

Cable has stabilized ahead of the 55-week ma at 1.3592

“GBP/USD has rallied to, but so far failed at the 200-DMA at 1.3800. Below the market we have strong support offered by the 1.3571 July low and the 55-week ma at 1.3607 and these are currently underpinning the market and are expected to hold.”

“Rallies face tough overhead resistance and above the 200-DMA lies the 55-DMA at 1.3819, the downtrend at 1.3842 and the more important 1.3984/1.4018 medium-term pivot.”

“Below 1.3571 would introduce scope to the 50% retracement level at 1.3457 of the move up from September 2020.”