GBP/USD could slip back to 1.2413 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, believes the pair could now grind lower towards the.12410 area.

Key Quotes

“GBP/USD is at last showing signs of failure at the 1.2784 100 day ma. We will ideally now see the market drop to the 1.2413 two month uptrend. This remains the break down point to the 1.2090/85 October 11 and 25 lows. Intraday rallies are likely to now struggle circa 1.2665”.

“Failure at 1.2085 would mean a continuation of the descent and should trigger losses to the October low at 1.1938 (according to CQG). Below it lies the May 1985 low at 1.1855. We regard the recent peak at 1.2674 as the end of the corrective phase and look for further losses”.