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Karen Jones, analyst at Commerzbank, notes that GBP/USD again sold off yesterday following its recent failure at the mid-July high at 1.2580 and suspect that the market has topped here, and is likely to remain on the defensive.

Key Quotes

“Minor support is found at the 61.8% retracement at 1.2196. Further minor support sits between the early and mid-August lows at 1.2080/15 and major support lies at the 1.1958 current September low. Intraday rallies are likely to remain capped by 1.2350/85 and further up strong resistance between the seven month resistance line, 200 day ma and the June high at 1.2638/1.2784 caps the market.”

“A slip through the 1.1958 recent low would put the 1.1491 October 2016 low (according to CQG) on the cards.”