GBP/USD now targets the area below 1.20 – Commerzbank

Cable could be headed towards sub-1.2000 levels, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“Sterling is in 7 week lows and is heading for the 1.1988/80 recent low and the bottom of the 5 month range at 1.1930. The market will stay directly offered below the 1.2381/1.2408, the 55 and 200 day moving averages”.

“Initial resistance is 1.2583 (9 th Feb high). However only above 1.2670 channel would allow for further strength to the 1.2776 December high. Between here and 1.2836 lies several Fibonacci retracements and major resistance and we suspect that it will struggle here”.