GBP/USD decline could extend to 1.2775/50 – Commerzbank

Cable faces risks of further downside towards the 1.2775/50 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD remains under pressure following the key day reversal last week from the 50% retracement at 1.3255 and the break of its near term uptrend: With such a strong rejection from the Fibo resistance seen, we continue to suspect that 1.3267 was the end of the move. Support at 1.3077/1.3049 has been eroded (uptrend, May high and 20 day ma) and we have a 13 count plus divergence. We look for losses to the support circa 1.2775/50 (December 2016 high) and the uptrend at 1.2694. Intraday rallies are likely to find initial resistance at 1.3035/1.3110 ahead of the 1.3267 recent high”.

“Above 1.3267 we have TD resistance at 1.3311 and the 1.3446/1.3502 September 2016 high and the 2009 low”.