GBP/USD eyes 1.3836 the Feb 2016 low en route 1.4000 - Commerzbank

In the view of Karen Jones, Analyst at Commerzbank, the GBP/USD pair still holds further potential towards the Feb 2016 low of 1.3836.

Key Quotes:

“GBP/USD eroded the 1.3658/71 September high and double Fibonacci retracement. A weekly close above here has been seen and targets 1.3836 the February 2016 low then psychological resistance at 1.40. The market stays immediately bid above the 1.3468 2 month uptrend. We note the 13 count on the 240 minute chart and would allow for a retracement to 1.3625/1.3540.“

“Below the 1.3468 would retarget the 1.3291 2014-17 uptrend.“

“Short Term Trend (1-3 weeks): The 2014-2017 downtrend line has been eroded to target the 1.3658/71 double Fibo. Above here would target 1.3836 the February 2016 low.”