GBP/USD offered below 1.2378/1.2407 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable remains offered while below the 1.2378/1.2407 band.

Key Quotes

“Sterling’s sell off has reached the 78..6% retracement at 1.2142, coupled with a 13 count on the 240 minute chart, we would allow for a minor rebound ahead of further losses to 1.1988/80 recent low and the bottom of the 5 month range at 1.1927. The market will stay directly offered below the 1.2378/1.2407, the 55 and 20 day moving averages”.

“Initial resistance is 1.2583 (9 th Feb high). However only above 1.2668 channel would allow for further strength to the 1.2776 December high. Between here and 1.2836 lies several Fibonacci retracements and major resistance and we suspect that it will struggle here”.