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In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s up move could find it difficult to extend beyond the 1.3340 area.

Key Quotes

GBP/USD’s correction higher is expected to struggle ahead of the 20 day ma at 1.3339. Attention should then revert to the 1.2953/15 2016-2017 uptrend. This is the break down point to the 1.2830 38.2% retracement and the 1.2575 50% retracement. The market has recently failed at the 1.3557 2014-2017 downtrend and is viewed negatively”.

“Above 1.3344 (50% retracement) would trigger a deeper recovery to potentially 1.3418/1.3524”.

“A close above 1.3670 will open the way to the 1.3836 February 2016 low and the 50% retracement at 1.4341”.