GBP/USD could bounce to 1.2950 ahead of further losses – Commerzbank

The recent price action around Cable could allow for a rebound to the mid-1.2900s head of a continuation of the downtrend, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD has sold off to the 78.6% retracement at 1.2798/85 and the 6 th September low, here we also find the 2016-2018 support line 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 ahead of further weakness”.

“Resistance at 1.3298/1.3363 guards the 200 day ma at 1.3457”.