The ongoing decline in Cable is now facing a potential visit to the 1.2696/62 band, according to Commerzbank’s Senior Technical Analyst Axel Rudolph.

“GBP/USD has fallen below the February low at 1.2772 with the August, October and mid-January lows at 1.2696/62 thus being on the cards. Minor resistance comes in at the 1.2865 April low. Immediate downside pressure will be maintained while no rise above the 200 day moving average at 1.2956 is seen. Next up is the May 10 high at 1.3048. Only if this level were to be exceeded, would we look for the 1.3185/97 April and current May highs as well as the 61.8% Fibonacci retracement to be retested. This currently looks unlikely. The cross will need to regain the 1.3217 January 25 high to introduce scope to the 1.3351/82 resistance area, made up of the February and March highs, where we expect it to struggle”.