GBP/USD upside pressure mitigated below 1.3267 – Commerzbank

Cable’s upside pressure should lose momentum on a break below 1.3267, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD has been rejected from critical medium term resistance at 1.3622/70, which represents a double Fibo and the 2014-2017 downtrend. Given the convergence of resistance here we would expect this to continue to hold the initial test and provoke some profit taking. However currently the intraday Elliott wave counts are positive. In order to alleviate immediate upside pressure the market will need to fall sub 1.3267 (August high)”.

“A close above 1.3670 will open the way to the 1.3836 February 2016 low and the 50% retracement at 1.4341”.