GBP/USD looks to challenge recent highs at 1.3614 - Commerzbank

In the view of Karen Jones, Analyst at Commerzbank, the GBP/USD pair is poised to test the recent highs of 1.3614, after it recently broke above its 2014-14 downtrend.

Key Quotes:

“GBP/USD has eased back to the 2-month uptrend at 1.3459, which is holding. While above here it remains immediately bid and we should see a challenge to recent highs at 1.3614/58, made in September and January. It has recently broken above the 2014-2017 downtrend and this has introduced scope to the 1.3658/71 September high and double Fibonacci retracement.“

“Below the 1.3459 would retarget the 1.3300 support and the 1.3265 2014-17 uptrend – this represents the breakdown point to 1.2830/1.2774, the 38.2% retracement and August low, and the 1.2575 50% retracement.”

“The 2014-2017 downtrend line has been eroded to target the 1.3658/71 double Fibo. Above here would target 1.3836 the February 2016 low.“