GBP/USD: Failure at the 1.3571 July low to introduce scope to 1.3160 – Commerzbank

GBP/USD is attempting to stabilize at the 55-week ma at 1.3635. But as cable has already seen a dip below here, a decline towards the 1.3571 July low is expected, with a break below here to open up 1.3160, analysts at Commerzbank brief.

Attention is on key support at 1.3571

“GBP/USD downside risk remains near term and the pair is starting to erode its 55-week ma at 1.3635, this guards the 1.3571 July low (2021 low and long term Fibo) and it is possible that this will hold the downside on the initial test.”

“Failure at the 1.3571 July low would represent a big break down point and would target the 1.3504 January 2009 low and introduce scope to the 200-week ma at 1.3160.” 

“Overhead resistance is provided by the one-month highs at 1.3893/1.3914.”