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Cable’s stance remains offered as long as it trades below 1.3890, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

GBP/USD has sold off to the 55 week ma which lies at 1.3400 and is our initial downside target. We note the 13 count and extreme caution is warranted. We have some support at 1.3302/20, the mid December low and we look for this to hold the initial test”.

“Currently intraday Elliott wave counts are pointing to a 1.3580/1.3660 move. The March low lies at 1.3712. Rallies are expected to remain capped by the 1.3890 55 day moving average and while below here the market will remain directly offered”.

“Below 1.3300 will trigger losses to the 1.3040 October low”.