GBP/USD faces minor support at 1.2785 – Commerzbank

Cable’s potential dip lower should see minor support in the 1.2785 level, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD last week did not manage to clear the 78.6% retracement at 1.3137 on a closing basis and near term we would allow for a dip lower. We have minor support at 1.2785, 5 th September low ahead of the 1.2662 August low. This should again hold for recovery. 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”.

“Minor resistance lies at 1.3025. Beyond this we would allow for gains to the top of the range at 1.3260/1.3363. Resistance at 1.3298/1.3363 guards the 200 day ma at 1.3393”.