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Karen Jones, Team Head FICC Technical Analysis Research, noted the very near term outlook on Cable stays neutral to negative while below 1.2515.

Key Quotes

GBP/USD remains on the defensive while contained by 2 month downtrend at 1.2515 today. This maintains an overall neutral to negative bias very near term and we would allow for a test of the 1.2339 2 month support line (connects the lows). This may again hold as there is a distinct lack of downside momentum”.

“Below 1.2366/39 (April 2017 low) we have very little support until the 1.2108, the 78.6% retracement of the entire move up from the 2016 low. What is interesting is that we have a 13 count on the weekly chart, however there remains scope for a further sell off – TD support lies at 1.2184″.

“Above the downtrend this would introduce scope to the 55 day ma at 1.2616 and the June high at 1.2784″.