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The GBP/USD pair has failed on its initial test of the mid-September high at 1.3008. The cable treads water around 1.2890/95 and Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects further losses to 1.2445 after seeing failure at the 1.3000/70 zone. 

Key quotes

“GBP/USD has tested and seen initial failure at 1.3008, the mid-September high. The market charted an outside day to the downside and although we are unable to rule out a slightly deeper move to 1.3070, this seems less likely.”

“Should the market fail in the 1.3000/70 zone as expected, we should see further losses to 1.2445 and then 1.2250/00.” 

“Only above the 1.3080 level would somewhat neutralise our outlook. It guards the 1.3201 March high and the recent high at 1.3483 and the 1.3504 downtrend.”