GBP/USD upside scope appears limited – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s extra gains now seems limited.

Key Quotes

“Last week we saw GBP/USD falter on its initial test of the 78.6% retracement at 1.4210. Directly overhead lies the 1.4272 200 week ma. This is reinforced by the 1.4340/45 recent high and long term Fibonacci retracement. We think upside scope is now limited and we would highlight the TD perfected set up on the daily chart, which is also indicating that the market is likely to fail. We have exited our long position”.

“Support is offered by the 55 day ma at 1.3940, below here lies the four month uptrend line at 1.3852. Further support can be seen between the February and the current March lows at 1.3765/12 and also at the 1.3658 September peak”.

“The 1.4345 high guard the 1.4565 April 2015 low and the 1.50 region”.