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Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested Cable could have carved an interim low in light of the recent price action.

Key Quotes

GBP/USD is upside corrective following a key day reversal charted on Thursday last week. When we couple this with the TD perfected set up on the weekly chart and the divergence of the daily RSI, it is likely that the market has charted an interim low. The Elliott wave count is suggesting a correction into the 1.3440/1.3540 band. There is scope for the 1.3598 200 day ma. A negative bias will remain entrenched while capped by the 1.3712 March low”.

“The market had been approaching strong support offered by the 1.3040 October 2017 low, and the 50% retracement at 1.2918 and looks to have reversed just ahead of here. Below 1.2918 would be treated as the break down point to 1.2580, the 61.8% retracement from 2016″.