GBP/USD in recovery mode, could test 1.3932 – Commerzbank

In opinion of Axel Rudolph, Senior Analyst at Commerzbank, Cable’s recovery could extend to the 1.3930 region.

Key Quotes

“GBP/USD recovers from slightly above the five month support line at 1.3770 towards the two month resistance line at 1.3932”.

“Support below the 1.3781 March 8 low comes in at the current March low at 1.3712 and also at the 1.3658 September peak”.

“Short term we expect this support zone to hold. Should this not be the case, we would have to allow for the 2017-18 uptrend line at 1.3528 to be reached. A close below it would confirm the end of the medium term up move”.

“Downside pressure will be maintained while trading below its current March high at 1.3930”.

“Above the 1.3930 level there is scope for a retest of the 1.4345 January high and the 1.4299 200 week moving average”.