GBP/USD probable test of 1.4070 – Commerzbank

Axel Rudolph, Senior Analyst at Commerzbank, suggested the likeliness that Cable could test the 1.4070 region if 1.40 is cleared.

Key Quotes

“GBP/USD remains below the 1.4000 mark, a rise above which would put the late February high at 1.4070 on the cards”.

“Support below the 55 day moving average at 1.3890 comes in along the five month uptrend line at 1.3811. Still 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. If retested, we expect this support zone to hold. Should this not be the case, we would have to allow for the 2017-18 uptrend line at 1.3555 to be reached. Only a close below it would confirm the end of the medium term up move”.

“Above the 1.4070 level there is scope for a retest of the 1.4285 200 week moving average and the 1.4345 January high”.