In view of Karen Jones, analyst at Commerzbank, GBP/USD pair has eroded the 2019 uptrend at 1.2570 and looks set for further losses to the 1.2444 December 2018 low.
“The market now stays directly offered below the 7th June high at 1.2763. It will need to regain the February low at 1.2772 on a closing basis in order to alleviate immediate downside pressure and avert further losses to the 1.2444 December 2018 low. This is the last defence for 1.2108, the 78.6% retracement of the move up from 2016.”
“Above the 200 day moving average at 1.2937. This would target the 1.3185/97 April and May highs.”