GBP/USD recent up move prompts caution – Commerzbank

In light of Cable’s recent price action, Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the likeliness of failure around current levels.

Key Quotes

“GBP/USD has reached 1.4000, various intraday divergences suggest caution. We note the 13 count on the 60minute, 240 minute, daily and weekly chart and are wary of failure here. The market stays immediately bid above the 1.3530 2-month uptrend. We would allow for a retracement to 1.3795/1.3660. Critical support is the 1.3350 2016- 2018 uptrend”.

“Only below the 1.3350 would negate the up move”.