GBP/USD on the brink of a correction? – Commerzbank

Cable’s upside could face some headwinds near term, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD new highs charted last week were not confirmed by the daily RSI, which is showing signs of triple divergence. This suggests that upside momentum has slowed and attention has reverted to its near term uptrend, currently at 1.3003. We also have TD resistance at 1.3205”.

“It has a near term uptrend at 1.3003 and 20 day ma at 1.2997, while above here it is bid. This guards support circa 1.2775/50”.

“Above 1.3205 targets the 1.3446 September high”.