GBP/USD potential for a test of 1.4004/67 band – Commerzbank

In light of Cable’s recent price action, a potential test of the 1.4004/67 band is not ruled out, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD the 1.3836 February 2016 low was eroded on Friday and the market sold off sharply. It is currently seems reluctant to head below the 1.3658 September peak and we would allow for a near term rebound towards the 1.4004/67 6 th February high and 20 day ma”.

“Key medium term support is the 1.3399 2016-2018 uptrend. We continue to view 1.4345 as an interim top for the market and look for further weakness”.

“Above 1.4400, the April 2015 low can be seen at 1.4568”.