GBP/USD has broken down from its 4-month trading range - Commerzbank

Karen Jones, an analyst at Commerzbank offers the technical outlook for trading the GBP/USD pair ahead of today's UK employment details.

Key quotes: 

“GBP/USD has eroded the bottom of its 4-month trading range and the 61.8% Fibonacci retracement of the 2016-2018 advance and the June 2017 low at 1.2593/57 (the November 2016, February 2017, and early April 2017 highs).”

“It has sold off to 1.2507 and this may offer some psychological support ahead of further losses. Below here targets the 78.6% retracement at 1.2109.”

“Previous range lows at 1.2662 will offer initial resistance ahead of the 1.2840 current December high. While capped by the resistance line at 1.2977 it will remain offered.”