GBP/USD rallies seen losing impetus around 1.3370 – Commerzbank

Senior Technical Analyst at Commerzbank Alex Rudolph sees Cable’s occasional rallies running out of steam in the 1.3370 area.

Key Quotes

“Last week’s GBP/USD rally took us by surprise but we still expect it to fail around the August peak at 1.3370. This is where it currently trades”.

“As long as this resistance level caps on a daily chart closing basis, the bottom of the triangle and August low at 1.2900/1.2866 should remain in sight”.

“The medium term focus is on the 1.2797/50 July low and the long term Fibonacci support. A close below here will be regarded as very negative and target 1.2060”.

“Key resistance remains to be seen at the mid-July high at 1.3481. Should it and the late June high at 1.3534 be overcome we would have to neutralize our view”.