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In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, Cable could attempt a test of 1.3260/1.3363 area on a breakout of the 1.3045 level.

Key Quotes

GBP/USD has sold off towards and reversed just ahead of the 1.2662 August low. The market is eroding the 20 and 55 day moving averages and above 1.3045 targets the top of the range at 1.3260/1.3363. The rally yesterday looks directional an at this point we will attempt to buy dips”.

“Below 1.2662 would trigger further weakness to the 61.8% retracement of the move 2016-2018 and June 2017 low at 1.2593/89″.