GBP/USD to extend its decline towards the 1.3670/69 zone – Commerzbank

GBP/USD is trading at around 1.3750, near the lowest levels since April, after breaking below the 1.3786 June low. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, maintains a negative bias below the 1.4018 near-term pivot. 

Long USD positions partially covered

“GBP/USD remains under pressure and we would allow for losses to extend towards the 200-day ma at 1.3645 and the late May and early June lows at 1.3670/69, we look for this to hold the initial test.” 

“We note the 13 count on the 240 minute chart and will partially cover the short position for now and tighten the stop.” 

“The negative outlook remains entrenched while capped by the 1.4018 near term pivot.” 

“Initial resistance is the 20-day ma at 1.3969.”