GBP/USD potential for a test of 1.2888 – Commerzbank

In light of the recent GBP sell-off, Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested a probable visit to the 1.2888 level.

Key Quotes

“GBP/USD has collapsed lower down through the uptrend and to the 55 day ma at 1.3130. This break lower suggests another leg lower to the 1.2888 2016-2017 uptrend. Intraday rallies are likely to struggle 1.3260/90. The May high at 1.3049 may offer temporary support, we note the 13 count on the 60 and 240 minute charts”.

“The market has recently failed at the 1.3579 2014-2017 downtrend and is viewed negatively”.

“A close above 1.3670 will open the way to the 1.3836 February 2016 low and the 50% retracement at 1.4341”.