GBP/USD offered below 1.2341 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted Cable remains offered below 1.2341 for the time being.

Key Quotes

“GBP/USD has recovered in its range and the rally has reached the 5 month downtrend at 1.2341 . The market will stay directly offered below here and we should see a retest of the 1.2090/83 support – this should be enough to trigger another leg lower”.

“Failure here would mean a continuation of the descent and if we use the range 1.2090-1.2335 to measure downwards our initial target is 1.1845 (the May 1985 low is 1.1855). Our intraday Elliott counts are suggesting a decline to 1.1630”.