GBP/USD losses momentum at the 1.3165 five-year resistance line – Commerzbank

FXStreet Team FXStreet

GBP/USD prints 0.14% loss as is trading closer to 1.31 down from the highs closer to 1.32 recorded yesterday. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, sees the cable correcting lower as the 1.3165 2015-2020 downtrend has proven to be too tough for the pound. Initial support awaits at 1.2814, the June high.

Key quotes

“GBP/USD’s new high of 1.31856 has been accompanied by a 13 count and divergence of the daily RSI. It is facing tough resistance at the 1.3165 2015-2020 downtrend and the 1.3201 March 2020 high and the risk of a correction lower is now high.”

“Dips lower are expected to find initial support at the 1.2814 June high ahead of 200-day ma at 1.2707 and remain contained by the 1.2588 support line.”

“Above 1.3213 (February high) will target the 1.3500/15 the December 2019 high and the January 2009 low.”

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