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According to Karen Jones, analyst at Commerzbank, GBP/USD has eroded the 200 day ma, which was also the location of the 1.2966 20 week ma.

Key Quotes

“Focus has shifted to the double Fibo retracement at 1.2900/1.2895, this is pretty solid support that is expected to hold the initial test. This guards the recent low at 1.2772. Below 1.2772 we would allow for losses to the 1.2669/62 15th January low and August low and possibly the 1.2609/78.6% retracement.”

“The market recently reached 1.3382 before failing. Should 1.2900/1.2895 hold, our overall target longer term remains the 1.3511 200 week ma.”

“Above 1.3217 (25th January high) will introduce scope up to the 1.3351/82 resistance.”