GBP/USD: Potential to plummet to the 1.3146 mark – Commerzbank

GBP/USD’s sell-off is approaching initial target 1.3581/71. Looking ahead, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, targets the 200-week moving average at 1.3146.

Initial resistance seen at the 200-DMA at 1.3790

“GBP/USD sell off has already reached and eroded the 1.3669 April low and we would allow for further losses to the 1.3571 July low.” 

“There is scope for a longer term move back to the 200-week ma at 1.3146.” 

“We have a 50% retracement level at 1.3457 of the move up from September 2020.” 

“Rallies will find initial resistance at the 200-day ma at 1.3790 ahead of the 1.3835 accelerated downtrend. This guards the 55-day ma at 1.3874 and the 1.4003/18 medium term pivot, which is expected to contain the topside.”