GBP/USD eyes still on 1.2797/50 – Commerzbank

Following the recent price action, Cable keeps targeting the 1.2797/50 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD has eroded the 55 day ma at 1.3147 and collapsed lower. Our target remains the 1.2797/50 July low and the long term Fibonacci support. A close below here will be regarded as very negative and target 1.2060. Intraday rallies are indicated to terminate circa 1.3080/1.3035”.

“We view the September high at 1.3443 as an interim high. Only if it and the late June high at 1.3534 were to be overcome would we neutralize our medium term negative outlook”.