GBP/USD: up trend over? – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, believes Cable could have topped around 1.3270 for the time being.

Key Quotes

“GBP/USD charted a key day reversal last week from the 50% retracement at 1.3255 and has now severed its near term uptrend: With such a strong rejection from the Fibo resistance seen, we continue to suspect that 1.3267 was the end of the move. The 1.3077/1.3049 band of support (uptrend, May high and 20 day ma) has been eroded and we have a 13 count plus divergence. Failure here would imply losses to the support circa 1.2775/50 (December 2016 high) and the uptrend at 1.2682”.

“Above 1.3267 we have TD resistance at 1.3311 and the 1.3446/1.3502 September 2016 high and the 2009 low”.