GBP/USD a close below 1.3342 could see 1.3204 tested – Commerzbank

Cable could fall to the 1.3200 area on a close below 1.3342, suggested Axel Rudolph, Senior Analyst at Commerzbank.

Key Quotes

“GBP/USD’s correction higher recently faltered marginally below the 23.6% Fibonacci retracement at 1.3481. The Elliott wave count is still pointing to a corrective rebound into the 1.3500 and then 1.3600 area which would not even represent a 38.2% retracement, which lies at 1.3652. A close below the June 12 low at 1.3342 should be enough to trigger losses to the 1.3204 recent low. Below 1.3200 will trigger losses to the 1.3040 October low”.

“The March low lies at 1.3712 and this should offer a tough near term barrier. Rallies are expected to remain capped by the 1.3727 55 day moving average and while below here the cross will remain directly offered”.