GBP/USD a test of 1.4345 is back on the cards – Commerzbank

In light of the recent price action in Cable, Karen Jones, Head of FICC Technical Analysis at Commerzbank, now suggests the probability of a visit to YTD peaks in the mid-1.4300s.

Key Quotes

“GBP/USD has seen a sharp rally higher through the 20 day ma. This has been enough to neutralise the immediate outlook and allow for a test of the 1.4166 resistance line. Should this be overcome there is scope for a retest of the 1.4345 recent high and the 1.4357 200 week ma. Support is found at the 1.3765 recent low and the 1.3658 September peak. Key medium term support is the 1.3399 2016-2018 uptrend. We note the 13 count on the 60 minute chart and would allow for initial failure at the resistance line”.

“Above 1.4400, the April 2015 low can be seen at 1.4568”.