GBP/USD initial hurdle lies at 1.3025 – Commerzbank

Following the deep sell off in overnight trade, the initial up barrier now lies at 1.3025, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD started to drop lower after Carneys speech. It has eroded the 1992-2016 support line at 1.2972/65 (this connects all the lows from 1992-2016) and virtually reached the 1.2750/78.6% retracement of the move from 1985 to 2007, this is regarded as the last defense for the 1.0463 1985 low”.

“Initial resistance is found 1.3025, 1.3124 (27th June low) and then 1.3534 29th June high. Intraday Elliott wave counts are suggesting failure at 1.3230/1.3365. We also have a large overnight gap to 1.3011, which is likely to be filled”.