FXStreet reports that Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, suggests that cable’s recovery faces initial resistance at 1.3726/34.

“GBP/USD saw quite a recovery yesterday from the 1.3557/78 July low, February low and long term Fibo, which suggests a reluctance to break down at this stage.”

“Rallies will find initial resistance at 1.3726/34 8th September low.”

“The 1.3571/57 low is key and a break below here would represent a big break down point and would target the 1.3504 January 2009 low and introduce scope to the 200-week ma at 1.3160.”