GBP/USD remains under pressure – Commerzbank
In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable remains vulnerable and could grind lower towards 1.3124 and then the 1.2970/60 area.
Key Quotes
“GBP/USD continues to hold sideways near term. It failed last week at its initial corrective target and is coming under further downside pressure this week”.
“Below the 1.3124 low we look for the market to head lower to the 1992-2016 support line at 1.2972/65 (this connects all the lows from 1992-2016). Below here lies the 1.2750/78.6% retracement of the move from 1985 to 2007, which is the last defense for the 1.0463 1985 low”.
“Rallies will find that the previous lows at 1.3837 (Feb low) and the 1.4005/15 (April and June low) will offer strong resistance. A downside bias will remain fully entrenched while below the 1.4080/50% retracement”.