GBP/USD - Upside bias intact - Commerzbank
Karen Jones, Head of FICC Technical Analysis at Commerzbank, says the upside bias remains intact as long as the pair holds above the last week's low of 1.3320.
GBP/USD last week we saw the market sell-off to and recover from its 20-day ma at 1.3341, for now, there remains an upside bias above last weeks low at 1.3320. It has recently broken above the 2014-2017 downtrend and this has introduced scope to the 1.3658/71 September high and double Fibonacci retracement. Below 1.3320 should be enough to alleviate immediate upside pressure and allow for weakness back to the 1.3157 2016-2017 uptrend.
Where are we wrong? The 1.3157 2014-17 uptrend represents the breakdown point to 1.2830/1.2774, the 38.2% retracement and August low, and the 1.2575 50% retracement.
Short-Term Trend (1-3 weeks): The 2014-2017 downtrend line has been eroded to target the 1.3658/71 double Fibo.
Long-term trend (1-3 months): A close below the 1.3157 uptrend will be viewed very negatively.