GBP/USD sidelined for the time being – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable appears sidelined so far, while the negative bias should remain as longs as it stays below 1.4243/1.4340-45 area.

Key Quotes

“GBP/USD is attempting to recover ahead of the five month uptrend line at 1.3935. Further support can be seen between the February and the March lows at 1.3765/12 and also at the 1.3658 September peak. The market is side lined, but intraday Elliott wave counts are more positive so we will exit our short positions for now”.

“The market remains capped by the 1.4243 200 week ma and the 1.4340/45 recent high and long term Fibonacci retracement and while capped here a negative bias will remain entrenched”.

“The 1.4345 high guards the 1.4565 April 2015 low and the 1.5000 region”.