GBP/USD accelerated lower, breaking below the 6 month uptrend, notes Commerzbank.
“The demise of this adds weight to the idea that the market has topped at 1.70,” CB argues.
“Initial support lies at the 1.6683/72 late March high and the mid-April low and then we would expect losses to 1.6480/67 the 23.6% retracement of the 2013-2014 move and the March low,” CB projects.
“Rallies are likely to find that the previous uptrend now offers resistance at 1.6790 and the short term downtrend at 1.6881 should now cap,” CB adds.
In line with this view, CB runs a limit order to sell GBP/USD at 1.6740, with a stop 1.6885.
