GBP/USD: A drop to 1.2847 is now on the cards – Commerzbank

Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, believes Cable could shed further ground and visit 1.2847.

Key Quotes

“GBP/USD on Friday traded through the near term downtrend at 1.3062, but did not maintain the break. It was enough however to stop out our short positions. It charted an outside day to the downside and we maintain that there is scope for a slide to the 1.2847 uptrend.”

“Below the market lies the December low at 1.2908. Failure here would put the 4 month uptrend at 1.2847 and the 200 day moving average at 1.2688 back on the plate.”

“A close above 1.3118 is required to alleviate immediate downside pressure and retarget the Fibonacci resistance at 1.3285.”