GBP/USD could slip to the 1.2970 area – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the likeliness of Cable to head towards the 1.2920 area.

Key Quotes

“GBP/USD is seeing a minor corrective rebound near term, which is indicated to terminate circa 1.3500/1.3730. Beyond this we look for the market to head lower to the 1992-2016 support line at 1.2972/65 (this connects all the lows from 1992-2016). Below here lies the 1.2750/78.6% retracement of the move from 1985 to 2007, which is the last defense for the 1.0463 1985 low”.

“Rallies will find previous lows at 1.3837 (Feb low) and the 1.4005/15 (April and June low) will offer strong resistance. A downside bias will remain fully entrenched while below the 1.4080/50% retracement”.