GBP/USD consolidation not ruled out – Commerzbank

Cable’s recent sell off could allow for some consolidation, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD’s sell off is approaching the 200 day ma at 1.3538 and it is possible that this will provoke some consolidation. Intraday rallies are indicated to terminate at circa 1.3715/1.3815 and we have divergence on the intraday charts. We would therefore allow for some near term profit taking”.

“Slightly longer term, we look for a slide to the 55 week ma at 1.3371”.

“A daily close above 1.4377 will negate our negative bias (not favoured)”.