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In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, there is still room for Cable to attempt a visit to the 1.3275/85 band.

Key Quotes

GBP/USD is struggling to maintain a foothold above the 20 day ma. Intraday Elliott wave counts are conflicting and as a result we have tightened up our stops. We would allow for recovery to the 1.3272/85 55 day ma and channel resistance. Last weeks low of 1.2957 was accompanied by a divergence of the daily RSI. Directly below here lies Fibonacci support at 1.2918 (50% retracement of the move up from 2016) and we are seeing some profit taking here”.

“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 1.3585 200 day ma”.