GBP/USD could slip back to 1.2424 – Commerzbank

After recent failure in the vicinity of 1.2780, Karen Jones, Head of FICC Technical Analysis at Commerzbank, believes Cable could test the 1.2424 level.

Key Quotes

“GBP/USD has failed at the 1.2778 100 day ma. We look for the market drop to the 1.2424 two month uptrend. This remains the break down point to the 1.2090/85 October 11 and 25 lows. Intraday rallies are likely to now struggle circa 1.2665.Initial support lies at 1.2302/1.2285”.

“Failure at 1.2085 would mean a continuation of the descent and should trigger losses to 1.1775 and then 1.1481 the recent spike low”.