GBP/USD: At new lows for the year, scope for a plunge to the 1.3160 mark – Commerzbank

GBP/USD is in new lows for the year. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the cable to plummet to the 200-week moving average at 1.3160.

Sterling is under pressure, target the 200-week ma at 1.3160

“GBP/USD has maintained its break lower, and has now eroded the 1.3515/04 January 2009 low and 2019 peak and this represents a big break down point. The close below here introduces scope to the 200-week ma at 1.3160.”

“Initial resistance lies at 1.3571, the July low and 1.3601 (August low) ahead of 1.3752, the 23rd September high and the 55-day ma at 1.3768. This guards the 1.3914 mid-September high.”