GBP/USD risks a drop to 1.3000 and the 1.2920 area – Commerzbank

Cable could lose further momentum and recede to the 1.3000 region and probably 1.2920 in the short-term, suggested Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

Key Quotes

“GBP/USD last week rallied to and failed at the 78.6% retracement at 1.3310 and is expected to fail shortly. Nearby support is offered by the 55 day moving average at 1.3000 and also by 1.2922 the 5 month uptrend. We would allow for a slide back to here short term.”

“Directly above here lies key resistance offered by the 1.3422 multi-year downtrend and we look for this to cap the market and provoke failure. This is reinforced by the 1.3515 December 2019 high.”