Axel Rudolph, Senior Analyst at Commerzbank, offers insights on the GBP/USD technical set up, as we head into Europe.
“GBP/USD remains below recent highs at 1.3614/58, made in September and January. Having said that, 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. The cross is bid above the 1.3300 level. Intraday dips lower are indicated to hold at circa 1.3450.”
“The 1.3300 support guards 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.”
“Short Term Trend (1-3 weeks): The 2014-2017 downtrend line has been eroded to target the 1.3658/71 double Fibo.”