GBP/USD to tackle the 1.3571

GBP/USD to tackle the 1.3571 July low while below the 1.38 level – Commerzbank

GBP/USD is approaching its accelerated downtrend at 1.3796. But while below here, the cable targets the 1.3571 July low, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank ,reports.

Pivot at 1.4018 to cap the upside

“GBP/USDs up move is approaching the accelerated downtrend and 200-day ma at 1.3796/1.3800. Below the market we have strong support offered by the 1.3571 July low and the 55-week ma at 1.3592.”

“Rallies face equally tough overhead resistance and above the 200-day ma lies the 55-day ma at 1.3844, the downtrend at 1.3867 and the more important 1.3984/1.4018 medium term pivot, which is expected to contain the topside.”

“Below 1.3571 would introduce scope, longer term, for a move back to the 200-week ma at 1.3148. We have a 50% retracement level at 1.3457 of the move up from September 2020.”