GBP/USD could retreat and test 1.2590 – Commerzbank

A failure around 1.2957 could spark a probable correction lower in Cable to the 1.2590 area, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD is currently holding below the July low at 1.2957. Failure here will signal further losses to the June 2017 low at 1.2590. The intraday Elliott wave counts are conflicting, a move above 1.2957 would allow for a challenge of the 1.3173 July 30 high. Minor resistance below this level comes in at the 1.3049 and 1.3102 late June lows. Intraday the market stays bid above 1.2795, currently we have no strong bias”.

“A move above the 1.3363 July high would imply a deeper corrective phase to the 1.3473/1.3559 June high and 200 day moving average”.