GBP/USD: Sterling slumps lower, holding above 1.3640 is key to see a consolidation – Commerzbank

GBP/USD dipped below the 1.3670 double-bottom on the UK's "Freedom Day". The pair would target the 1.3504/1.3457 region on a break below 1.3640, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Cable has sold off to the March and April lows

“GBP/USD has sold off to the March and April lows at 1.3670/69. This may provoke some near-term consolidation.” 

“Failure at 1.3640 would target 1.3504/1.3457, the 55-week ma and the 50% retracement of the move higher from September 2020. Failure here would target the 200-week ma at 1.3134.” 

“Initial resistance lies at 1.3913, last week's high ahead of the 1.3999/55-day ma.”