GBP/USD bid above 1.3338 – Commerzbank
Cable remains bid while above the 1.3338 area, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
“GBP/USD recently eroded major resistance at 1.3445, we have seen a weekly close above the 2014-2017 downtrend. The move above the downtrend has introduced scope to the 1.3658 September high. It stays immediately bid above the 1.3338 mid October high. We note the 13 count on the 240 minute chart and will wait to buy the dip”.
“Only below 1.3338 would alleviate immediate upside pressure and allow for weakness back to the 1.3130 2016-2017 uptrend”.
“The 1.3130 2014-17 uptrend represents the break down point to 1.2830/1.2774, the 38.2% retracement and August low, and the 1.2575 50% retracement”.