Forex: GBP/USD: Pair might have topped at 1.7040/50 - Commerzbank

The Pound fell on Thursday from 1.6380 to levels below 1.6000 breaking trendline support, which according to Karen Jone, technical analyst at Commerzbank, adds weight to the idea that market topped at 1.7040/50.

Observes Pound's failure to break above the 55 day moving average: "GBP/USD has failed on its initial test of the 1.6462/55 day moving average, and started to erode the base of its channel. The demise of this support is important – failure here adds weight to the idea that the market topped at 1.7040/50."

Furthermore, a close below 1.6100, would set the pair on its way to 1.5690/55, adds Jones: "A close below 1.6100 will confirm the market has topped targeting initially 1.5690/55 (Fibonacci retracement and the 55 week ma) and then 1.5270. The market will remain offered below the 55 day ma at 1.6456."