GBP/USD faces extra consolidation – Commerzbank

In opinion of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, Cable could now face some consolidation in the short-term horizon.

Key Quotes

“GBP/USD’s recent high has not confirmed by the RSI (this is both the daily and the weekly charts) and we will allow for possibility that the market will consolidate further near term. Below 1.3520 would alleviate immediate upside pressure for losses to the 1.3350 late December low, there is scope for the 1.3277 7 month uptrend.”

“Above 1.3760 lies the 1.3836 February 2016 low. Longer term the 2018 peak at 1.4377 is being targeted.”