GBP/USD upside bias remains while above 1.3908 – Commerzbank

Cable is expected to keep the upside bias unchanged as long as it trades above 1.3908, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD charted an inside day. Sometimes this reflects a loss of upside momentum but currently we have a slight upside bias which is maintained for now while above the 55 day ma and 1.3908. It looks capable of tackling the mid-February peak at 1.4145 and then the 1.4285 200 week ma. This is reinforced by the 1.4340/45 recent high and long term Fibonacci retracement”.

“Support below the 55 day moving average comes in along the four month uptrend line at 1.3828. Further support can be seen between the February and the current March lows at 1.3765/12 and also at the 1.3658 September peak”.

“The 1.3658 support guards the 2017-18 uptrend line at 1.3533”.