GBP/USD set to grind lower towards the 200-week ma at 1.3161 – Commerzbank

GBP/USD is struggling around 1.36. Near-term strength is still seen as corrective only with the cable expected to edge lower towards the 200-week moving average at 1.3161, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Offered below 1.3914

“GBP/USD has not maintained the break of the 1.3515/04 January 2009 low and 2019 peak – it is not clear if this was a premature break or a false break, but intraday Elliott wave counts remain negative and we will look to reinstate short positions.”

“Initial resistance is 1.3752, the 23rd September high and the 55-day ma at 1.3761 and the 1.3914 mid-September high.” 

“Currently while capped by 1.3914 we will maintain a negative bias and allow for scope to the 200-week ma at 1.3161. The recent low is 1.3411.”