GBP/USD is trading above 1.3700 after bouncing off key support at 1.3567/78. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes that cable’s recovery faces initial resistance at 1.3726/34.
Holding above the 1.3571 2021 low is key to avoid a big slump
“GBP/USD saw quite a recovery yesterday from the 1.3557/78 July low, February low and long term Fibo, which suggests a reluctance to break down at this stage.”
“Rallies will find initial resistance at 1.3726/34 8th September low. Stronger resistance is found at one-month highs at 1.3893/1.3914.”
“The 1.3571/57 low is key and a break below here would represent a big break down point and would target the 1.3504 January 2009 low and introduce scope to the 200-week ma at 1.3160.”
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