GBP/USD risks further downside – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, believes Cable could head lower in the very near term.

Key Quotes

“GBP/USD’s correction higher last week fell short of the 1.3534 recent high and is now struggling to overcome the 20 day m.a at 1.3365 and looks set to weaken very near term”.

“The intraday Elliott wave count has turned more negative and we have reinstated short positions, we look for a slide to 1.2885/1.2750”.

“The market recently sold off towards and recovered just ahead of the 1.2750/78.6% retracement of the move from 1985 to 2007. Support at 1.2750 is regarded as the last defense for the 1.0463 1985 low”.