Karen Jones, analyst at Commerzbank, suggests that the GBP/USD correction lower is approaching its corrective target zone circa 1.3060-1.3000.

“Provided it recovers from this vicinity we should see the market rally towards the 1.3363 July 2018 high. Overall target remains the 1.3599 200 week MA. Below 1.3000 lies the near term support line at 1.2925 ahead of a double Fibo retracement at 1.2900/1.2895. This guards the recent low at 1.2772.”