According to Karen Jones, analyst at Commerzbank, GBP/USD pair has come under pressure and sold off to the 38.2% retracement at 1.2922.

Key Quotes

“The weakness in daily RSI telegraphed this correction lower. There is potential for slippage to 1.2804 the 55 day ma and even 1.2669/62, the August low. Intraday rallies will now find resistance at 1.3033, the 200 day ma and will stay directly offered below here.”

“Overhead lies the 55 week ma at 1.3280. Here we also find the July, September and October highs at 1.3258/1.3363. We suspect that this will hold and provoke failure. Above here would target the June high at 1.3473 and the 200 week ma at 1.3641 (not favoured).”