GBP/USD to hold the 1.3850 uptrend – Commerzbank

The GBP/USD pair sunk to take another look at the 1.3850 uptrend after weak data on Friday. If the cable holds the uptrend, a retest of the last week high at 1.4018 seems likely, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, briefs.

Key quotes

“GBP/USD sold off on Friday after data showed the UK economy shrank in January, with exports to the European Union dropping 41% from the previous month.” 

“Attention is back on its two-month uptrend at 1.3850 and the 55-day ma at 1.3772. Provided that this holds, we would allow for a retest of 1.4018 (last week's high), and this guards 1.4238/44 (the recent high).” 

“Above 1.4245 would target the 2018 peak at 1.4377.”