GBP/USD rallies seen struggling near 1.4025/65 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested occasional rallies in Cable should meet resistance in the 1.4025/65 band.

Key Quotes

“GBP/USD continues to consolidate below the 55 day ma and is on the defensive. It maintains a negative bias following its recent key week reversal and failure to chart a weekly close above its 200 week moving average. Further negative weight was added by the close below the 6 month uptrend and the 55 day ma on Friday. This suggests that 1.4377 is an interim peak. Below the market lies at the February and the March lows at 1.3765/12 and also at the 1.3668/58 September peak and 2016-2017 uptrend. Intraday rallies are indicated to terminate circa 1.4025/65”.

“A daily close above 1.4377 is required to confirm that the cross is ready to resume its bull trend (not favoured). The 1.4377 April 17 high guards the 1.4565 April 2015 low and the 1.4957 2007-2018 resistance line”.