GBP/USD initial support lies at 1.2335 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s should find initial support in the 1.2330 region.

Key Quotes

“GBP/USD has eroded its short term support line at 1.2487 and is back under pressure. Initial support is 1.2335, the 19th October high. Recent lows and our near term target remain 1.2090/83”.

“Failure here would mean a continuation of the descent and should trigger losses to the May 1985 low at 1.1855. We regard the recent peak at 1.2674 as the end of the corrective phase and look for further losses. Our intraday Elliott counts are suggesting a decline to 1.1550”.

“Above 1.2674, there is scope for a test of the 1.2798/1.2840 6 th July low and 38.2% retracement of the entire move down from June”.