GBP/USD could test 1.2798/85 on a breach of 1.2905 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable could drop to the 1.2798/85 band in case 1.2905 is cleared.

Key Quotes

“GBP/USD has eroded its 55 day ma and support line and sold off towards the early October low at 1.2924. The market recently failed at 1.3298, the September high and 1.3363, the July high and attention is now on the 1.2924/05 October low and Fibonacci retracement. Below 1.2905 there is scope for a slide back to the 78.6% retracement at 1.2798/85 and the 6 th September low. This is seen as the last defence for the 1.2662 August low”.

“Resistance at 1.3298/1.3363 guards the 200 day ma at 1.3477”.