FXStreet (Edinburgh) - Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggests that a break of 1.6915 could allow deeper retracements.
“GBP/USD has eroded its 2014 uptrend BUT did not close below there an we await a close below the uptrend at 1.6915 today to confirm the break”.
“Once this has been seen, this will introduce scope to 1.6694/30 then 1.6280/53 the 38.2% retracement of the move from 2013 to 2014 and the 2014 low”.
“Longer term we view the recent peak at1.7195 as a significant top and eventually look for losses back to 1.60”.
“Intraday rallies should terminate circa 1.7000 and remain capped by the 20 day ma at 1.7065”.