GBP/USD: Focus turns to the downside, next stop at 1.4123 – Commerzbank

GBP/USD is hovering around 1.4150, off the highs, as the pair charted a key day reversal on Tuesday. Subsequently, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, has turned its sight towards the downside. Initial support is seen at 1.4123.

Bullish above uptrend at 1.3868

“GBP/USD failed to crack above 1.4238/45 yesterday – this is the recent high and the March 2018 high. The new high was accompanied by a large divergence of the daily RSI and it did in fact chart a key day reversal.” 

“Our attention has reverted to the downside and loss of the 20-day ma at 1.4123 should refocus attention on nearby support at 1.4000/18. Below here lie the uptrends lie at 1.3868 and 1.3933.”

“Longer-term view will remain positive above the uptrends at 1.3868 and 1.3933. We eventually look for gains through 1.4245 to 1.4377 the 2018 high.”