GBP/USD further downside on a breach of 1.2090/83 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees another leg lower on a break below 1.2090/83.

Key Quotes

“GBP/USD continues to weigh on the downside and we await a break below the 1.2090/83 support to trigger another leg lower. Rebounds from here are expected to remain tepid and remain capped by 1.2335. The market will stay directly offered below here and we await a break below 1.2090/83 to trigger another leg lower”.

“Failure here would mean a continuation of the descent and if we use the range 1.2090-1.2335 to measure downwards our initial target is 1.1845 (the May 1985 low is 1.1855). Our intraday Elliott counts are suggesting a decline to 1.1630”.