FXStreet (Edinburgh) - In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the offered tone around the sterling prevails as long as the market trades below 1.6838.
“GBP/USD has seen a major sell off following the MPC yesterday. The market has reached the initial target at 1.6694/61”.
“This is the low that we saw back in May, the 38.2% retracement of the entire move from November 2013 and the 200 day ma and we would expect it to hold the initial test”.
“Rallies should find good interim resistance offered by the short term downtrend at 1.6838 and while capped here the market will remain directly offered”.
“The target below the 1.6661 200 day ma is 1.6523 en route to 1.6280/53 the 38.2% retracement of the move from 2013 to 2014 and the 2014 low”.
“Longer term we eventually look for losses back to 1.60”.