GBP/USD offered below 1.2372/1.2405 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted Cable’s stance stays offered below the 1.2372/1.2405 band.

Key Quotes

“Sterling’s erosion of the 78.6% retracement at 1.2142, leaves the market on the defensive – please note however that we have not yet CLOSED below here. This is considered to be the last defense for the 1.1988 January low. The market stays directly offered below the 55 and 200 day ma at 1.2372/1.2405. We target 1.1988/80 recent low and the bottom of the 5 month range at 1.1920”.

“Initial resistance is 1.2583 (9 th Feb high). However only above 1.2661 channel would allow for further strength to the 1.2776 December high. Between here and 1.2836 lies several Fibonacci retracements and major resistance and we suspect that it will fail here”.