GBP/USD upside still capped around 1.3340 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank believes Cable could have found a near term top in the 1.3338/43 band.

Key Quotes

“GBP/USD last week saw rejection from the recent October high and the 50% retracement at 1.3338/43. This continues to act as a short term ceiling for the market. It has sold off to the 1.3041 support line and the 1.3022 2016-2017 uptrend line. This is now exposed and represents the break down point to the 1.2830 38.2% retracement and the 1.2575 50% retracement”.

“Above 1.3343 (50% retracement) would trigger a deeper recovery to potentially 1.3417/1.3515, the 61.8% and the 2014-2017 downtrend”.

“The cross has failed at the 2014-2017 downtrend line”.