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According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable’s outlook stays offered while below 1.3363.

Key Quotes

GBP/USD has eroded psychological support at 1.3000. We note that the daily RSI has not yet confirmed the new low and directly below here lies Fibonacci support at 1.2918 (50% retracement of the move up from 2016) and it is possible that we will see some profit taking here. Below 1.2918 would be treated as the break down point to 1.2580, the 61.8% retracement from 2016″.

“The market stays offered below 1.3363, 9 th July 2018 high. Initial resistance is the 20 day ma at 1.3180 and the 1.3308 55 day ma”.

“Above 1.3363, the 9 th July high would imply a deeper corrective phase to the 1.3470/1.3500 area and there is scope for the 1.3588 200 day ma (although this is less favoured)”.