GBP/USD offered below 1.3278 – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the offered bias remains intact in Cable while below 1.3278.

Key Quotes

“GBP/USD appears to have failed at the 20 day m.a at 1.3278 and is directly offered below here”.

“The intraday Elliott wave count suggests that the market is not ready to go sub 1.30 yet, failure here is needed to trigger a slide to 1.2885/1.2750. Support at 1.2750/78.6% retracement of the move from 1985 to 2007 is regarded as the last defense for the 1.0463 1985 low”.

“Above the 20 day ma we have 1.3534, the 29th June high. we remain unable to rule out a rally to 1.3638, the 38.2% retracement and potentially 1.4158, the 61.8% retracement of the recent sell off”.