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GBP/USD has failed at its corrective target at 1.3070 and is extending Tuesday’s sell-off. The cable trades just above the 1.29 mark and Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects to see further losses to 1.2445 and eventually targets 1.2250/00.

Key quotes

“GBP/USD has reached its corrective target and failed as expected. We will therefore assume another leg lower is in the offing and we should see further losses to 1.2445 and then 1.2250/00.” 

“Only above the 1.3083 level would somewhat neutralise our outlook. It guards the 1.3201 March high and the recent high at 1.3483 and the 1.3472 downtrend.”