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GBP/USD is off 1.37 after hitting a new 33-month high as the cable closed on Thursday at 1.3712. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, highlights the 1.3836 February 2016 low as the next target in the upside. 

Key quotes

“GBP/USD has at last eroded 1.3712. The close above 1.3712 on a daily chart closing basis pushes the 1.3836 February 2016 low to the fore. Longer-term the 2018 peak at 1.4377 is being targeted.” 

“Currently while dips hold over 1.3520 remains bid. Below 1.3520 would alleviate immediate upside pressure for losses to the 1.3350 late December low, there is scope for the 1.3244 seven-month uptrend.”

“Currently, the Elliott wave count is implying a slide to 1.3370/1.3500.”