Karen Jones, analyst at Commerzbank, notes that GBP/USD pair has again sold off towards 1.2108, the 78.6% retracement of the entire move up from the 2016 low.

“Rebounds from here are currently indicated to be likely to struggle around 1.2350. The 1.2108/00 level guards the 1.1988 January 2017 low and the 1.1491 3rd October low (according to CQG). It stays negative while contained by 2 month downtrend at 1.2482 today. Above the downtrend this would introduce scope to the 55 day ma at 1.2588 and the June high at 1.2784. Only a rise above the June high at 1.2784 would indicate that a bottom is being formed (not favoured).”