GBP/USD expected to cap the topside – Commerzbank

Cable’s upside is expected to struggle around the 1.3440 area, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD is approaching 1.3445, the 2014-2017 downtrend. We again look for this to cap the topside and failure here should lead to a retest of the 1.3103 2016-17 uptrend represents the break down point to 1.2830/1.2774, the 38.2% retracement and August low, and the 1.2575 50% retracement”.

“Above the 1.3445 downtrend will see a rally to the 1.3658September high”.