In GBP/USD, Commerzbank notes that it has at last started to ease back from major resistance at 1.7041/51 which represent the 2009 high and the 2005 low.
“We look for some profit taking to be seen here. We also note the 13 count on the daily chart and the TD resistance at 1.7062 and both suggest that we should allow for initial failure here,” CB projects.
“Below 1.6915 would alleviate immediate upside pressure and trigger a sell off to the 7 month support line at 1.6776…Above 1.7065/75 will trigger a move to the 50% retracement at 1.7331 (of the move down from the 2007 peak),” CB adds.
In line with this view, CB maintains a short GBP/USD position as a short-term trade recommendation from 1.7050, with a stop at 1.7075, and a target at 1.6955.
