GBP / USD has eroded its short-term uptrend and is on the defensive. The pound remains pressed towards 1.3750, but as long as the 1.3734 / 31 support holds, the pair should see more gains, as reported Karen Jones, Head of Technical Analysis Team at Commerzbank.
A rally above 1.4018 is needed to rejuvenate the chart
“Attention is on the nearby support 1.3734 / 31 (July 2 low). As this area underpins the pair, We could see new gains in the short term towards the most important pivot in the medium term 1.3984 / 1.4018.”
“A rally above 1.4018 is needed to rejuvenate the chart and target February and June highs at 1.4243 / 49.”
“Below 1.3730, we have strong support offered by the July low at 1.3571 and the 55-week moving average at 1.3622 and these are expected to act as a floor for the market.”