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Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, explains that GBP/USD is likely to remain in a consolidative mode below 1.4238/1.4245 in the near term.

Key quotes

“GBP/USD on Friday tested and has held below 1.4238/45, the recent high and the March 2018 high, and we would allow for some near-term consolidation. We note the divergence of the daily RSI. Nearby support is 1.4100 ahead of 1.4000/18 and the uptrends at 1.3821 and 1.3883.”

“We note the strong buy signal on the daily DMI and eventually look for gains through 1.4245 to 1.4377 the 2018 high.”

“A slip below the uptrend at 1.3821 (not favoured) would target 1.3483, the September 2018 high and the 200-day ma at 1.3494.”