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Cable could be on its way to the 1.3320 area, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

GBP/USD has eroded the 1.3458 January low and is in new lows for the year. It has ignored the divergence of the daily RSI and the 13 count on the chart and the 78.6% retracement lies at 1.3319 and we assume that is where it is heading. The 55 week ma lies at 1.3400″.

“Currently intraday Elliott wave counts are pointing to a 1.3580/13660 move. The March low lies at 1.3712. Rallies are expected to remain capped by the 1.3899 55 day moving average and while below here the market will remain directly offered”.

“A daily close above 1.4377 will negate our negative bias (not favoured)”.