GBP/USD eyes some consolidation near 1.2300 – Commerzbank

Senior Technical Analyst at Commerzbank Axel Rudolph sees Cable attempting to stabilize around 1.2300 ahead of a potential leg lower to the 1.2090 area.

Key Quotes

“GBP/USD started to come under more intense downside pressure on Friday and sold off to initial support at 1.2335, the 19th October high. This leaves the market weighing on the downside to start this week and we are looking for a slide to recent lows and our near term target remain 1.2090/83. First it may well stabilize around the three month support line at 1.2304, though”.

“Failure at 1.2083 would mean a continuation of the descent and should trigger losses to the May 1985 low at 1.1855. We regard the recent peak at 1.2674 as the end of the corrective phase and look for further losses. Our intraday Elliott counts are suggesting a decline to 1.1550”.