GBP/USD rallies could struggle around 1.3705/1.3805 – Commerzbank

Occasional rallies in Cable should find resistance in the 1.3705/1.3805 band, suggested Axel Rudolph, Senior Analyst at Commerzbank.

Key Quotes

“GBP/USD reflects a loss of downside momentum around the 200 day ma at 1.3541 and it is possible that we will see some profit taking here near term. Intraday rallies are indicated to terminate at circa 1.3705/1.3805 and we have divergence on the intraday charts. Rallies are expected to remain capped by the 1.3967 55 day moving average”.

“Slightly longer term, we look for a slide to the 55 week ma at 1.3384”.

“A daily close above 1.4377 will negate our negative bias (not favoured)”.