GBP/USD: Consolidation likely below the 1.4238/45 February high – Commerzbank

Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, explains that GBP/USD is likely to remain in a consolidative mode below 1.4238/1.4245 in the near term.

Key quotes

“GBP/USD on Friday tested and has held below 1.4238/45, the recent high and the March 2018 high, and we would allow for some near-term consolidation. We note the divergence of the daily RSI. Nearby support is 1.4100 ahead of 1.4000/18 and the uptrends at 1.3821 and 1.3883.”

“We note the strong buy signal on the daily DMI and eventually look for gains through 1.4245 to 1.4377 the 2018 high.”

“A slip below the uptrend at 1.3821 (not favoured) would target 1.3483, the September 2018 high and the 200-day ma at 1.3494.”