GBP/USD fails again at 1.3310 – Commerzbank

GBP/USD fell sharply from above 1.3300 and was last seen trading around 1.3230, down -0.3% on the day. Initial support awaits at 1.2295 as Commerzbank’s Karen Jones expects the cable to fail in the 1.3310- 1.3422 band. 

Key quotes

“GBP/USD has again tested the 78.6% retracement at 1.3310. Directly above here lies key resistance offered by the 1.3422 multi-year downtrend and we look for this to cap the market and provoke failure. This is reinforced by the 1.3515 December 2019 high.” 

“Nearby support is offered by the 55-day moving average at 1.2995 and also by 1.2942 the five-month uptrend. We would allow for a slide back to here short-term.”