FXStreet (Edinburgh) - Karen Jones, Head of FICC Technical Analysis at Commerzbank, expects the bearish tone to prevail while capped by 1.6841.
“GBP/USD has reacted higher, tested the 5 week downtrend, drawn from the 1.6996 May peak. This is located at 1.6841 today and while capped here the market is directly offered”.
“The rally is viewed as a return to point of break down, but we need to see some follow through selling in the next few days to confirm that view”.
“Slightly longer term, we continue to believe that the market has topped at 1.70.