GBP/USD under pressure, rallies could falter around 1.3225 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable remains under pressure and could head towards 1.2415.

Key Quotes

“GBP/USD last week broke down from its triangle. Given the prior sell off the risks are on the downside for the next few weeks and the downside measured target from this triangle is 1.2415”.

“Initial support is 1.3056, the 26th July low, and the 1.2797/50 July low and Fibo. If we are correct then we should see rallies remain capped circa 1.3225 and key resistance is now the top of the triangle at 1.3411”.

“Support at 1.2750/78.6% retracement of the move from 1985 to 2007 is regarded as the last defence for the 1.0463 1985 low”.