Cable remains on the defensive and attention has now shifted to sub-1.2000 levels, suggested Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

“GBP/USD last week held sideways then sold off again on Friday. It is on the defensive. Attention has reverted to the January 2017 low at 1.1988. Below here lies the 1.1491 3rd October low (according to CQG). Rallies, if seen, should struggle circa 1.2210/1.2320. It stays negative while contained by its 2 month downtrend at 1.2403 today. Only above the downtrend this would introduce scope to the 55 day ma at 1.2502 and the June high at 1.2784”.