GBP/USD upside faces strong resistance in 1.3338/43 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s upside is seen struggling in the 1.3338/43 band.

Key Quotes

“GBP/USD has extended gains towards the recent October high and the 50% retracement at 1.3338/43. This is tough nearby resistance and we again look for this to cap the market. While capped here, we will maintain a negative bias and continue to target the 1.2995 2016-2017 uptrend line. This is the break down point to the 1.2830 38.2% retracement and the 1.2575 50% retracement”.

“Above 1.3343 (50% retracement) would trigger a deeper recovery to potentially 1.3417/1.3515, the 61.8% and the 2014-2017 downtrend”.