GBP/USD still points to further downside – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable remains poised for further pullbacks.

Key Quotes

“GBP/USD despite the recovery seen today, the market remains under pressure following the recent break down from its triangle”.

“This is bearish price action and given the prior sell off the risks are on the downside for the next few weeks and the downside measured target from this triangle is 1.2415”.

“Initial support is 1.2944, the 78.6% retracement, and the 1.2797/50 July low and Fibo. If we are correct than we should see rallies remain capped circa 1.3225 and key resistance is now the top of the triangle at 1.3403. Intraday rallies are indicated to terminate circa 1.3100”.