The correction lower in Cable should meet strong contention in the 1.2760/00 band, suggested Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

“GBP/USD last week failed at psychological resistance at 1.30, and is correcting lower very near term. Dips are indicated to hold circa 1.2760/00. Directly above here we have the 200 week ma at 1.3138 and the 1.3187 May high and these remain our short term targets. 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 1.2285 uptrend. The near term uptrend guards 1.2196/94”.