GBP/USD: probability of a failure around 1.4345 is high – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, believes Cable’s upside could fail around recent tops in the vicinity of 1.4350.

Key Quotes

“GBP/USD – no change. The market is currently consolidating below the 50% retracement of 1.4345 of the move down from the 2014 peak. This is tough resistance - directly above here lies the 200 week moving average at 1.4386. We have a number of 13 counts on the daily and weekly charts and we believe the risk of failure here to now be high, the accelerated uptrend has been eroded and we should see a slide back to the mid-January high at 1.3942 and the 1.3658 September peak”.

“Intraday rallies should find initial resistance circa 1.4145/90. Above 1.4400, the April 2015 low can be seen at 1.4568”.