GBP/USD: Tough resistance awaits at the 1.3893/1.3914 one-month highs – Commerzbank

GBP/USD is trading above 1.3700 after bouncing off key support at 1.3567/78. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes that cable’s recovery faces initial resistance at 1.3726/34.

Holding above the 1.3571 2021 low is key to avoid a big slump
“GBP/USD saw quite a recovery yesterday from the 1.3557/78 July low, February low and long term Fibo, which suggests a reluctance to break down at this stage.”

“Rallies will find initial resistance at 1.3726/34 8th September low. Stronger resistance is found at one-month highs at 1.3893/1.3914.”

“The 1.3571/57 low is key and a break below here would represent a big break down point and would target the 1.3504 January 2009 low and introduce scope to the 200-week ma at 1.3160.”