GBP/USD: Under pressure, failure at 1.3515 to trigger a slump to 1.3160 – Commerzbank

GBP/USD has dropped into two.-year lows. The cable is set to extend its decline on a break below 1.3515, the 2019 high, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Cable may rebound ahead of further weakness

“GBP/USD has finally collapsed lower, taking out the 1.3557/78 July low, February low and long-term Fibo. It is about to test the 1.3515/04 January 2009 low and 2019 peak and this represents a big break down point, it is possible that it may hold the initial test for a near-term rebound into the 1.3615/1.3670 band ahead of further weakness.”

“Failure at 1.3515/04 would introduce scope to the 200-week ma at 1.3160.”

“Initial resistance lies at 1.3752, the 23rd September high and the 55-day ma at 1.3777. This guards the 1.3914 mid-September high.”