GBP/USD to fail at the 1.3422 long-term downtrend – Commerzbank

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GBP/USD is approaching a 13-year downtrend at 1.3422 where the cable is expected to fail and reverse back with support seen at 1.3004, per Commerzbank.

Key quotes

“GBP/USD has broken higher and is on course for major resistance offered by the 1.3422 multi-year downtrend and we look for this to ideally cap the market and provoke failure. This is reinforced by the 1.3515 December 2019 high. This is a long-term pivot and both levels represent major resistance.” 

“Nearby support is offered by the 55-day moving average at 1.3004 and also by 1.2962, the five-month uptrend. We would allow for a slide back to here short-term.”

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