FXStreet (Edinburgh) - According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, bullish attempts would run out of steam near 1.7035.
“GBP/USD’s failure at the 1.7195 resistance is increasingly looking like that was the end of the bull move It has broken down as expected from its expanding top formation”.
“Intraday we would allow for a small rebound from the 1.6955/55 day ma, but note intraday rallies are indicated to terminate circa 1.7035 and remain capped by the 20 day ma at 1.7099”.
“We look for losses back to the 1.6900 2014 uptrend and the risk has increased that we will see a break below here now also”.
“Failure will trigger losses to 1.6694/30 then 1.6280/53 the 38.2% retracement of the move from 2013 to 2014 and the 2014 low”.