GBP/USD now focused on 1.3204 – Commerzbank

Following the recent price action, Cable now seems to have shifted its focus to the 1.3204 level, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD last week was rejected from just below the 23.6% Fibonacci retracement at 1.3481. It is increasingly looking to be on the defensive and attention has reverted to the recent low at 1.3204. Below 1.3200 will trigger losses to the 1.3040 October low. Initial resistance is the 20 day ma at 1.3348”.

“The Elliott wave count is still pointing to a corrective rebound into the 1.3500 and then 1.3600 area which would not even represent a 38.2% retracement, which lies at 1.3652. A negative bias will remain entrenched while capped by the 1.3712 March low”.