GBP/USD rallies appears struggling around 1.3260/90 – Commerzbank

Cable’s upside is expected to meet strong resistance in the 1.3260/90 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD is correcting higher very near term and we suspect that intraday rallies are likely to struggle 1.3260/90. Beyond this corrective rebound, it targets the 1.2940/15 2016-2017 uptrend. This is the break down point to the 1.2830 38.2% retracement and the 1.2575 50% retracement. The market has recently failed at the 1.3557 2014-2017 downtrend and is viewed negatively”.

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