GBP/USD room for a test of 1.2924/05 – Commerzbank

Recent price action in Cable prompts markets to look to the 1.2924/05 area, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD has eroded its 55 day ma and support line and in doing so tipped the market into bearish mode. The market recently failed at 1.3298, the September high and 1.3363, the July high and attention is now on the 1.2924/05 October low and Fibonacci retracement. Below 1.2905 there is scope for a slide back to the 78.6% retracement at 1.2798/85 and the 6 th September low. This is seen as the last defence for the 1.2662 August low”.

“Resistance at 1.3298/1.3363 guards the 200 day ma at 1.3477”.