GBP/USD climbed to multi-week highs above 1.3700 on Thursday. As the cable seems to have gone into a consolidation phase below that level, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to stay below the downtrend at 1.3811.

Cable offered below 1.3914

“GBP/USD has rallied to the 55-day ma at 1.3733, close to this lies 1.3752, the 23rd September high and the 1.3811, the four-month resistance line.”

“We suspect it may be trying to recover but intraday Elliott wave counts are negative so we are going to the side lines today.” 

“Above the downtrend will target 1.3914 (mid-September high) and we suspect that we will need to regain this resistance to regenerate further upside momentum. Resistance at 1.3914 guards the more important 1.3984/1.4018 medium term pivot.” 

“Interim support at lies at 1.3569 ahead of the 1.3411 recent low.”