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Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted Cable stays on the way to test the 1.3040 region.

Key Quotes

GBP/USD has sold off into new lows for the year and remains on course for the 1.3040 October 2017 low. Between here and the 50% retracement at 1.2918 we would expect to see some sort of stabilisation and/or profit taking. We note the TD perfected set up on the weekly chart and must allow for this possibility. Note that failure here would be treated as the break down point to 1.2580, the 61.8% retracement from 2016″.

“The market remains on the defensive following its recent rejection from just below the 23.6% Fibonacci retracement at 1.3481. Initial resistance is the 20 day ma at 1.3318″.