GBP/USD risks further downside – Commerzbank

In light of the recent sell off, Cable remains under pressure and vulnerable to extra decline, suggested Axel Rudolph, Senior Analyst at Commerzbank.

Key Quotes

“GBP/USD reached the August 2016 low at 1.2866. Further down sit the July 2016 low at 1.2797 as well as the December 2016 and January 2017 highs as well as August 2017 low at 1.2776/1.2706. Still further down the June 2017 low can be spotted at 1.2590”.

“Over the next few days the risk remains on the downside while trading below the 1.3173 July 30 high. Minor resistance below this level comes in at the 1.3049 and 1.3102 late June lows”.

“A move above the 1.3363 July high would imply a deeper corrective phase to the 1.3473/1.3580 June high and 200 day moving average”.