GBP/USD set to tumble back toward the 1.3796 support line – Commerzbank

GBP/USD is the strongest across the board, trading back above 1.3900. However, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, expects the cable to slip back towards the 2020-2021 support line at 1.3796. 

The 1.3977/1.4018 area is set to cap the cable

“GBP/USD is seen tumbling back towards the 2020-2021 support line at 1.3796 whilst remaining below the 55-day moving average March, April highs and mid-May low at 1.3977/1.4018. This area is expected to continue to cap. Further up sit the 1.4082/91 late May and early June lows.”

“Below 1.3784 the March and April lows can be found at 1.3670/69.”