GBP/USD scope for a retreat to 1.3942/1.3658 – Commerzbank

Cable could slip back to the 1.3942/1.3658 band, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD is at last retreating from the 50% retracement of 1.4345 of the move down from the 2014 peak. This is tough resistance - directly above here lies the 200 week moving average at 1.4373. We have a number of 13 counts on the daily and weekly charts and we believe the risk of failure here to now be high, the accelerated uptrend has been eroded and we should see a slide back to the mid-January high at 1.3942 and the 1.3658 September peak”.

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