Karen Jones, analyst at Commerzbank, explains that the GBP/USD pair has eroded the double Fibo retracement at 1.2900/1.2895, but we have not yet closed below here and we would allow for a small rebound into the 1.3000-1.3035 band ahead of further weakness.

“Failure here targets the February low at 1.2772. Below 1.2772 we would allow for losses to the 1.2669/62 15th January low and August low and possibly the 1.2609/78.6% retracement. It is now directly offered below the 1.3033 short term downtrend. Above 1.3217 (25th January high) will introduce scope up to the 1.3351/82 resistance. Initial resistance is the 1.3132 12th April high.”