Occasional bullish attempts in Cable are expected to struggle in the 1.3160 region (20-day SMA), noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

“GBP/USD has bounced aggressively off the 200 day ma at 1.2976 – this has neutralised our immediate outlook. While we would allow for a rebound from the 200 day ma, it should be noted that downside risks are growing and intraday rallies are likely to struggle on rallies to the 1.3161 20 day ma. Below the 200 day ma lies the 1.2929 55 week ma and the double Fibo retracement at 1.2900/1.2895, this is pretty solid support that is expected to hold the downside. This guards the recent low at 1.2772. The market recently reached 1.3382 before failing. Should the 55 week ma hold, our overall target remains the 1.3552 200 week ma”.