GBP/USD initial test seen at 1.3622/70 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees Cable facing a critical hurdle in the 1.3622/70 band.

Key Quotes

“GBP/USD is approaching critical medium term resistance at 1.3622/70, which represents a double Fibo and the 2014-2017 downtrend. Given the convergence of resistance here we would expect this to hold the initial test. In order to alleviate immediate upside pressure the market will need to fall sub 1.3267 (August high)”.

“A close above 1.3670 will open the way to the 1.3836 February 2016 low and the 50% retracement at 1.4341”.