GBP/USD scope for a test of 1.40 and above – Commerzbank

Cable’s up move could re-visit the 1.4000 handle and, if cleared, 1.4070 should be back on the radar, suggested Senior Analyst at Commerzbank Axel Rudolph.

Key Quotes

“GBP/USD is about to test the 1.4000 mark, above which the late February high can be spotted at 1.4070”.

“Support below the 55 day moving average at 1.3875 comes in along the five month uptrend line at 1.3795. Still further support can be seen between the February and the current March lows at 1.3765/12 and also at the 1.3658 September peak. If retested, we expect this support zone to hold. Should this not be the case, we would have to allow for the 2017-18 uptrend line at 1.3544 to be reached. Only a close below it would confirm the end of the medium term up move”.

“Above the 1.4070 level there is scope for a retest of the 1.4345 January high and the 1.4299 200 week moving average”.