GBP/USD: Buy the dips circa 1.3730 - Commerzbank

Karen Jones, Analyst at Commerzbank, notes that the GBP bulls may face exhaustion now, but GBP/USD remains poised for a move towards 1.4000.

Key Quotes:

“GBP/USD spiked higher yesterday, various intraday divergences suggest consolidation ahead of a move to psychological resistance at 1.40. The market stays immediately bid above the 1.3495 2 month uptrend. We would allow for a retracement to 1.3730/1.3600 ahead of further gains.“

“Below the 1.3495 would retarget the 1.3291 2014-17 uptrend.”

“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.”