GBP/USD negative below 1.3443/3534 – Commerzbank

Cable’s stance would remain negative as long as it keeps the trade below the 1.3443/3534 band in the medium term.

Key Quotes

“GBP/USD has seen a decent rebound from the 55 day ma at 1.3157 that has potential to retest the top of the range. We view the September high at 1.3443 as an interim high. Only if it and the late June high at 1.3534 were to be overcome would we neutralize our medium term negative outlook”.

“Below the 55 day ma at 1.3157 our target remains the 1.2797/50 July low and the long term Fibonacci support”.

“While 1.3443 caps, the medium term focus will remain on the 1.2797/50 July low and the long term Fibonacci support. A close below here will be regarded as very negative and target 1.2060”.