GBP/USD is struggling to gain traction as the 200-day moving average (DMA) at 1.3851 caps for now. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the cable to remain under pressure.

GBP/USD to see furthe gains to 1.3914 on a move above the 200-DMA at 1.3851

“GBP/USD continues to hold steady just below the 200-DMA at 1.3851, we are concerned that this will continue to cap the topside and are alert to the idea of failure here.”

“Interim support lies at 1.3720, the 55-DMA then 1.3569, the 12th October low ahead of the 1.3411 recent low.”

“A move above the 200-DMA should see further gains to 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.”