GBP/USD to extend its advance towards the 1.4018 mark – Commerzbank

GBP/USD has recently reversed just ahead of the 1.3571 July low and the 55-week ma at 1.3592. The cable is now approaching its accelerated downtrend at 1.3806, as Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes.

Break below 1.3571 to introduce scope for a move back to the 200-week ma at 1.3148

“Rallies face tough overhead resistance and will find initial resistance at the 200-day ma at 1.3797 and the 1.3806 accelerated downtrend. This guards the 55-day ma at 1.3850 and the more important 1.3984/1.4018 medium term pivot, which is expected to contain the topside.”

“Below 1.3571 would introduce scope, longer-term, for a move back to the 200-week ma at 1.3148. We have a 50% retracement level at 1.3457 of the move up from September 2020.”