GBP/USD potential test of 1.4110 – Commerzbank

In light of the recent price action in Cable, Karen Jones, Head of FICC Technical Analysis at Commerzbank, does not rule out a test of the 1.4110 area.

Key Quotes

“GBP/USD move lower yesterday proved to be relatively short lived and we suspect another attempt on the short term resistance line will be seen, this is currently located at 1.4110. Support is found at the 1.3765 recent low and the 1.3658 September peak and only below here alleviates immediate upside pressure, to negate it we need a close below the 1.3425 2016-2018 uptrend. Nearby resistance is the 20 day ma at 1.4008”.

“Above the resistance line there is scope for a retest of the 1.4345 recent high and the 1.4343 200 week ma. Above 1.4400, the April 2015 low can be seen at 1.4568”.