GBP/USD initially supported at 1.2335 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable still finds initial support in the 1.2330 region.

Key Quotes

“GBP/USD eroded its short term support line earlier in the week and remains on the defensive. Initial support is 1.2335, the 19th October high, we are looking for a slide to recent lows and our near term target remain 1.2090/83”.

“Failure here would mean a continuation of the descent and should trigger losses to the May 1985 low at 1.1855. We regard the recent peak at 1.2674 as the end of the corrective phase and look for further losses. Our intraday Elliott counts are suggesting a decline to 1.1550”.

“Above 1.2674, there is scope for a test of the 1.2798/1.2840 6 th July low and 38.2% retracement of the entire move down from June”.

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