GBP/USD still has 1.2785 in sight – Commerzbank

Cable is seen grinding lower and a visit to 1.2785 remains on the cards, suggested Axel Rudolph, Senior Analyst at Commerzbank.

Key Quotes

“GBP/USD’s recent decline is expected to continue with the September low at 1.2785 remaining in sight, provided that no rise above the 1.3049 June low is seen. If 1.2785 were to be slipped through, the August and October lows at 1.2696/62 would be in focus”.

“Below 1.2662 would trigger further weakness to the 61.8% Fibonacci retracement of the 2016-2018 advance and the June 2017 low at 1.2593/89”.

“Immediate downside pressure will remain in play while the cross stays below the 55 day moving average at 1.3024. Further resistance comes in at the 1.3175 current November high below which we will retain a bearish bias”.