GBP/USD is poised to reach the 1.3622 55-week moving average. Below here lies the 1.3571 July low. Further falls are set to be seen on a failure to hold above this level, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.
One-month highs at 1.3893/1.3914 provide overhead resistance
“GBP/USD is poised to encounter its 55-week ma at 1.3635, this guards the 1.3571 July low and it is possible that this will hold the downside on the initial test.”
“Below the 1.3571 July low would target the 1.3504 January 2009 low and introduce scope to the 200-week ma at 1.3160.”
“Overhead resistance is provided by the one-month highs at 1.3893/1.3914.”
This article was originally published by Fxstreet.com. Read the original article here.