GBP/USD faces a potential move to sub-1.2900 levels – Commerzbank

In light of the recent price action, Cable could attempt a test of the area below the 1.2900 mark, suggested Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

Key Quotes

“GBP/USD charted an outside day to the downside on Friday and it is possible that it will react back to its 1.2893 uptrend and while this holds we will assume that there is scope for a deeper recovery to the 1.3285 Fibonacci retracement.”

“The market should remain underpinned by the 1.2893 uptrend and the December low at 1.2908. Failure here would put the 200 day moving average at 1.2690 back on the plate.”