GBP/USD to recede from the corrective target at 1.3070 – Commerzbank

GBP/USD has met its corrective target at 1.3070 after reaching a five-week high of 1.3083 on Monday and should now fail, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

Key quotes

“GBP/USD has met its 1.3070 corrective target and we still favour failure here. Should the market fail here as expected, we will assume another leg lower is in the offing and we should see further losses to 1.2445 and then 1.2250/00.”

“Only above the 1.3080-1.3110 level would somewhat neutralise our outlook. It guards the 1.3201 March high and the recent high at 1.3483 and the 1.3472 downtrend.”