In view of Karen Jones, Head of FICC Technical Analysis Research at Commerzbank, Cable could attempt a rebound as long as it trades above the 1.2090 area.
“GBP/USD has recently seen a massive spike lower to reach the 1.1938 level. The currency pair briefly dipped to 1.2090 on October 11. It needs to remain above this level for our anticipated small recovery rally to ensue”.
“Since three inside days were made in the past few days a break below 1.2090 would almost certainly mean a continuation of the descent with the 1.1938/07 low again targeted (and lower)”.
“Similarly a break above the 1.2279 October 13 inside day high would point towards higher levels being seen with the 1.2500 mark being a possible target area. We also have a time zone gap back to 1.2639. It is possible that this will be partially filled, but is not our favoured scenario”.
“We have a resistance line at 1.2947 and will consider that the market remains directly offered below the 1.3056 late September high. Below 1.1938 we would target the 1.0463 1985 low”.
- R3 1.2222
- R2 1.2203
- R1 1.2189
- PP 1.2170
- S1 1.2156
- S2 1.2137
- S3 1.2123