GBP/USD remains vulnerable – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable remains under pressure, with the key area to look at being 1.2090/83.

Key Quotes

“GBP/USD having failed at 1.2335 recently is now coming under pressure. The market stays directly offered below here and the near term break down point is 1.2090/83. 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”.

“Should resistance at 1.2335 be overcome then this would trigger scope for further gains to the 1.2500 vicinity”.