Fade the rallies in GBP/USD – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, considers occasional bullish attempts in Cable as selling opportunities.

Key Quotes

GBP/USD spent last week oscillating at the 200 day moving average but has again sold off to the 1.3458 January low. Failure here on a closing basis will trigger losses to the 1.3394 55 week moving average. We note the 13 count and suspect the market is not quite ready to break lower yet, we will sell the rallies”.

“Intraday rallies will need to overcome last week’s high at 1.3618 to retest resistance at 1.3695/1.3712 (March low). Rallies are expected to remain capped by the 1.3918 55 day moving average and while below here the market will remain directly offered”.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.