GBP/USD: Rebound to run out of steam at the 1.3599/1.3607 resistance zone – Commerzbank

GBP/USD has climbed above 1.3500 and looks to extend its rebound. However, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects sterling’s strength to fade at the 1.3599/1.3607 resistance area.

Cable sees a minor bounce higher

“GBP/USD is slowly correcting higher. The market last week sold off into new lows for the year, these were not confirmed by the daily RSI.”

“We are only looking for a minor corrective bounce and suspect it will not make much impact beyond 1.3599/1.3607.”

“Interim resistance lies at 1.3607. The market stays offered while capped by the 55-day ma at 1.3654.” 

“Beyond a minor bounce, it is likely to remain under pressure and on course for the 200-week ma at 1.3162.”