Fade the rallies in GBP/USD – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, considers occasional bullish attempts in Cable as selling opportunities.

Key Quotes

“GBP/USD spent last week oscillating at the 200 day moving average but has again sold off to the 1.3458 January low. Failure here on a closing basis will trigger losses to the 1.3394 55 week moving average. We note the 13 count and suspect the market is not quite ready to break lower yet, we will sell the rallies”.

“Intraday rallies will need to overcome last week’s high at 1.3618 to retest resistance at 1.3695/1.3712 (March low). Rallies are expected to remain capped by the 1.3918 55 day moving average and while below here the market will remain directly offered”.