GBP/USD approaching its 5 year downtrend – Commerzbank

Karen Jones, analyst at Commerzbank, suggests that GBP/USD is approaching its 5 year downtrend at 1.3156.

Key Quotes

“Also found in this vicinity is the 50% retracement of the move down from 2018 at 1.3167 and the 1.3187 May high and this is tough resistance and we look for the market to fail here. Minor support is offered by 1.3013 October high and the 20 day ma at 1.2916 and this guards the 1.2768 8th November low.”

“Failure at 1.2768 would probably see a slide to the 200 day ma at 1.2698. This guards the 1.2582 September high. Below 1.2582 lies the 1.2548 uptrend line. It guards 1.2196/94.”

“Above 1.3187 lies 1.3382 the 2019 high and potentially the 61.8% retracement at 1.3450.”