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Last week, the GBP/USD pair saw a key day reversal ahead of the 1.3712 February 2018 low which pointed to an interim top. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, sees the cable heading towards the 1.3350 late December low.

Key quotes

“GBP/USD last week saw a key day reversal just ahead of the 1.3712 February 2018 low and now is starting to sell-off. The market is eroding support offered by the 1.3540/1.3483 September and early December highs. Further down sits the 1.3350 late December low, the 1.3189 December 21 low and also the 1.3135 December trough.”

“Currently, the Elliott wave count implies a slide to 1.3370/1.3275.” 

“Only a rise above 1.3712 on a daily chart closing basis would push the 1.3836 February 2016 low to the fore.”

“Longer-term, the 2018 peak at 1.4377 is being targeted.”