GBP/USD faces downside risks below 1.3173 – Commerzbank

In opinion of Axel Rudolph, Senior Analyst at Commerzbank, Cable could fall further while the 1.3173 level continues to cap.

Key Quotes

“GBP/USD has dropped to the December 2016 and January 2017 highs and August 2017 low at 1.2776/1.2706. There it is likely to short-term stabilize. 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 1.2957 July 19 low as well as 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”.