GBP/USD now targets 1.2775/59 – Commerzbank

Cable now risks a test of the 1.2275/59 band, suggested Axel Rudolph, Senior Technical Analyst at Commerzbank.

Key Quotes

“GBP/USD has now fallen below the 38.2% Fibonacci retracement at 1.2825 and probes the July low at 1.2811, a fall through which will target the 1.2775/59 December 2016, late April and late May lows. Further down the 50% retracement and 200 day moving average can be seen at 1.2688/50”.

“We continue to suspect that the 1.3267 current August high was the end of the up move. While trading below the next lower 1.3031/49 May and August 11 highs immediate downside pressure will be maintained. Further resistance sits at the 1.3126 July 18 high”.