GBP/USD: Sell off reached the 78.6% retracement at 1.2290 – Commerzbank

The GBP/USD pair is under pressure, in the opinion of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, who analyzes the cable technically.

Key quotes

“GBP/USD’s outlook is negative, the sell-off has already reached the 78.6% retracement at 1.2290 – this is regarded as the last defence for the 1.1958 September low.” 

“Rallies are likely to now find the 200-day ma at 1.2702 acts as near term resistance and we look for the market to ideally fail on rallies into the 1.2480/1.2620 band.”