Cable’s stance should remain bid while above 1.3338, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
“GBP/USD has continued to ease back and will shortly encounter the 1.3338 October high. It has recently broken above the 2014- 2017 downtrend. This has introduced scope to the 1.3658/71 September high and double Fibonacci retracement. It stays immediately bid above the 1.3338 mid October high”.
“However the support looks exposed and below 1.3338 would alleviate immediate upside pressure and allow for weakness back to the 1.3130 2016-2017 uptrend”.
“The 1.3130 2014-17 uptrend represents the break down point to 1.2830/1.2774, the 38.2% retracement and August low, and the 1.2575 50% retracement”.
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