GBP/USD to see a correction lower as holds below five-year downtrend at 1.3165 – Commerzbank

GBP/USD has seen initial failure at the five-year resistance line at 1.3165. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects a correction lower in the short-term with initial support seen at the 1.2814 June high.

Key quotes

“GBP/USD is downside corrective following its initial failure at the 1.3165 2015-2020 downtrend. The 1.3201 March 2020 high reinforces resistance above here and we look for a correction lower near-term.” 

“Dips lower are expected to find initial support at the 1.2814 June high ahead of 200-day ma at 1.2704 and remain contained by the 1.2565 support line.”