GBP/USD risks further downside – Commerzbank

In light of recent price action in Cable, Head of FICC Technical Analysis at Commerzbank Karen Jones suggested the pair is now risking the likeliness of extra downside.

Key Quotes

“GBP/USD has failed to clear the 20 day ma at 1.3908 and near term risks have shifted to the downside. While capped by the resistance line at 1.3999 a negative bias remains entrenched. Nearby support is located at the 1.3658 September peak and the 1.3479 2016-2018 uptrend. A close below the latter level is needed to confirm the end of the medium term up move (favoured)”.

“Above the 1.3999 resistance line there is scope for a retest of the 1.4345 recent high and the 1.4313 200 week ma”.