GBP/USD room for a test of 1.3345/1.3470 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted technicals are suggesting a potential test of the 1.3345/1.3470 band.

Key Quotes

“GBP/USD charted a key day reversal yesterday. When we couple this with the TD perfected set up on the weekly chart it is time to exit short positions. The market was approaching strong support offered by the 1.3040 October 2017 low, and the 50% retracement at 1.2918 and looks to have reversed just ahead of here. The Elliott wave count is suggesting scope for a correction into the 1.3345/1.3470 band”.

“Below 1.2918 would be treated as the break down point to 1.2580, the 61.8% retracement from 2016”.