GBP/USD faces a probable test of 1.3000 – Commerzbank

Cable recent sell off appears to have opened the door for a potential visit to the psychological 1.3000 handle, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD is in marginal new lows for the year and looks set to tackle psychological support at 1.3000. We note that the daily RSI has not confirmed the new low and directly below here lies Fibonacci support at 1.2918 (50% retracement of the move up from 2016) and it is possible that we will see some profit taking here. Below 1.2918 would be treated as the break down point to 1.2580, the 61.8% retracement from 2016”.

“The market stays offered below 1.3363, 9 th July 2018 high. Initial resistance is the 20 day ma at 1.3195 and the 1.3318 55 day ma”.