GBP/USD now looks to 1.4021 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s upside should meet the 1.4020 region, where it could struggle to overcome.

Key Quotes

“GBP/USD is seeing a near term rebound, but it will shortly encounter the resistance line at 1.4021 and we have our doubts that the market will be able to sustain a break higher at this juncture. While capped here, the outlook stays negative. We have partially covered our long position and raised the stop for the remainder”.

“Nearby support is located at the 1.3658 September peak and the 1.3479 2016-2018 uptrend. A close below the latter level is needed to confirm the end of the medium term up move (favoured)”.

“Above the 1.4021 resistance line there is scope for a retest of the 1.4345 recent high and the 1.4313 200 week ma”.