Further downside lies ahead for GBP/USD – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable remains poised for a continuation of the bearish trend in the next weeks.

Key Quotes

“GBP/USD remained under pressure following the recent break down from its triangle. This is bearish price action and given the prior sell off, the risks will remain on the downside for the next few weeks”.

“The downside measured target from this triangle is 1.2415. The focus is on the 1.2797/50 July low and Fibo. However we also note the presence of a TD perfected set up, which may prompt a near term rebound”.

“Intraday rallies should remain capped by the 1.2980/1.3010 area. Intraday resistance lies 1.3056 and key resistance is now the top of the triangle at 1.3385”.