GBP/USD: up move negated below 1.3358 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s upside bias should be negated below 1.3358.

Key Quotes

“GBP/USD has reached the 50% retracement of 1.4345 of the move down from the 2014 peak. Directly above here lies the 200 week moving average at 1.4399 last week. We have a number of 13 counts on the daily and weekly charts, we believe the risk of failure here to now be high, if holding longs we would tighten stops/lighten the position. Further up the April 2015 low can be seen at 1.4568”.

“The cross has started to erode the 1.4148 accelerated one month uptrend line. This guards the mid-January high at 1.3942”.

“Only an unexpected fall below the 1.3358 2017- 18 uptrend line would negate the current up move”.