GBP/USD a test of 1.3240 is not ruled out – Commerzbank

A visit to the 1.3240 area is not ruled out, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD remains on the defensive while capped by the 20 and 55 day moving averages at 1.3174/1.3215 and attention is focussed on the 1.3064/22 support line and 2016-2017 uptrend. It represents the break down point to 1.2830/1.2774, the 38.2% retracement and August low, and the 1.2575 50% retracement”.

“The recent October high and the 50% retracement at 1.3338/43 continue to act as a short term ceiling for the market. Near term we are unable to rule out a deeper retracement to the 1.3243 resistance line ahead of further failure”.