GBP/USD: Below 1.3730 to introduce scope to the 1.3571 July low – Commerzbank

GBP/USD has eroded its near-term uptrend and is on the defensive. Cable remains pressured towards 1.3750, but while the 1.3734/31 support, the pair should see further gains, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, briefs.

A rise above 1.4018 is needed to rejuvenate the chart

“Attention is on nearby support at 1.3734/31 (2nd July low). Whilst this area underpins, we would allow for further near-term gains to the more important 1.3984/1.4018 medium-term pivot.” 

“A rise above 1.4018 is needed to rejuvenate the chart to target the February and June highs at 1.428/49.” 

“Below 1.3730, we have strong support offered by the 1.3571 July low and the 55-week ma at 1.3622 and these are expected to act as a floor for the market.”