GBP/USD outlook remains unclear – Commerzbank
Cable’s outlook should remain negative while capped by 1.4055, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
Key Quotes
“GBP/USD’s outlook is unconvincing. It has recently eroded a band of support at circa 1.3782/1.3763 (55 day ma, the 9th February low and a 4 month uptrend) – but surprisingly has seen little follow through AND we have not seen a CLOSE below the 1.3763 level. Below here lies the 1.3658 September peak and the 1.3452 2016-2018 uptrend. A close below the latter level is needed to confirm the end of the medium term up move (favoured)”.
“Resistance is provided by the 20 day ma at 1.3921 and the resistance line at 1.4055. While capped here, the outlook stays negative”.
“Above the resistance line there is scope for a retest of the 1.4345 recent high and the 1.4329 200 week ma”.