In GBP/USD, Commerzbank suspect that we will see major resistance at 1.7041/51 retested, these represent the 2009 high and the 2005 low.
“Provided that we remain under pinned by the 1.6920 support an immediate upside bias is preserved. Above 1.7065/76 will trigger a move to the 50% retracement at 1.7331 (of the move down from the 2007 peak),” CB projects.
“Below 1.6920 would alleviate immediate upside pressure and trigger a sell off to the 7 month support line at 1.6799,” CB adds.
In line with this view, CB runs a limit order to enter small longs GBP/USD on dips to 1.7000, with a stop below 1.6920.
