GBP/USD rallies seen faltering around 1.4010/60 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s bullish attempts should struggle in the 1.4010/60 band.

Key Quotes

“GBP/USD has seen a minor bounce from the 1.3836 February 2016 low, which is holding. Intraday rallies will ideally struggle 1.4010/60 for an immediate downside bias to be maintained. Failure here should see a deeper sell off back to the 1.3658 September peak. Key medium term support is the 1.3372 2016-2018 uptrend. It recently failed at the 50% retracement of 1.4345 of the move down from the 2014 peak. This is reinforced by the 200 week moving average at 1.4373. We continue to view this as an interim top for the market and look for further weakness”.

“Above 1.4400, the April 2015 low can be seen at 1.4568”.