GBP/USD could still test 1.2415 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable still risks a visit to 1.2415, the target measure of the recently broken triangle.

Key Quotes

“GBP/USD remains under pressure following the recent break down from its triangle”.

‘This is bearish price action and given the prior sell off, the risks are on the downside for the next few weeks and the downside measured target from this triangle is 1.2415”.

“Initial support at 1.2944, the 78.6% retracement has been eroded and the focus is on the 1.2797/50 July low and Fibo. Intraday resistance lies 1.3055 and key resistance is now the top of the triangle at 1.3390”.

“Support at 1.2750/78.6% retracement of the move from 1985 to 2007 is regarded as the last defence for the 1.0463 1985 low”.