In view of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, Cable is still expected to test the key 1.3000 area.

“GBP/USD last week recovered from near term support offered by the 1.2784 25th June high. This leaves the market well placed to tackle psychological resistance at 1.3000. Directly above here we have the 200 week ma at 1.3131 and the 1.3187 May high and these remain our short term targets. The 200 day ma at 1.2710 guards 1.2582. For now, provided dips lower hold over 1.2582 (20th September high), an immediate upside bias is maintained. The 1.3187 May high guards the 1.3382 2019 high. Below 1.2582 lies the 1.2382 17th July low and the 1.2348 uptrend. The uptrend guards 1.2196/94”.