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In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable remains on the defensive and could test the 1.3040 area.

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. 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″.