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GBP/USD trades around 1.2970, modestly flat on the day, having reversed from daily lows of 1.2941. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, maintains a bearish bias while the cable trades below the 20-DMA at 1.3101 and looks for a slump towards 1.2250.

Key quotes

“GBP/USD’s bounce from the 200-day ma at 1.2729 has been tepid and so far has remained capped by the 20-day ma at 1.3101. While below here we will maintain a negative bias. 

“Loss of 1.2690 Fibo support should be enough to trigger a slide to 1.2445 and then 1.2250/00.”

“The 20-day ma guards the recent high at 1.3483 and the 1.3522 downtrend.”