GBP/USD to extend its correction lower towards the 1.3569 mark – Commerzbank

GBP/USD is on the defensive as it trades around 1.3650 after failing at the 1.3851 200-day moving average (DMA). Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the cable to fall towards the 1.3569 mark.

GBP/USD to climb towards 1.3914 on a break above the 200-DMA

“GBP/USD is easing back from the 200-DMA at 1.3851. The cable has failed here for now and even though the move lower appears to be corrective, the market is on the defensive.”

“Below the market we have 1.3569, the 12th October low ahead of the 1.3411 recent low.”

“A move above the 200-DMA should see further gains to 1.3914 (mid-September high). Resistance at 1.3914 guards the more important 1.3984/1.4018 medium-term pivot.”