GBP/USD could see a rebound to 1.2950/70 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable could attempt a bounce to the 1.2950/70 band.

Key Quotes

“GBP/USD has sold off to the 2016-2018 support line at 1.2795 this week and we would allow for this to hold the initial test. This is seen as the last defence for the 1.2662 August low. Currently we would allow for a very small bounce towards 1.2950/70 ahead of further weakness”.

“Below 1.2662 would trigger further weakness to the 61.8% retracement of the move 2016-2018 and June 2017 low at 1.2593/89”.