FXStreet reports that GBP/USD is retracing this morning, and Commerzbank’s Karen Jones expects the cable to find initial support at 1.2486 while the 78.6% retracement at 1.2818 should cap.

“GBP/USD there is scope for a test of the 78.6% retracement at 1.2818 (of the move down from the March peak). Given that we have a TD perfected set up on the daily chart and a 13-count on the 240-minute chart, we suspect that this will hold.” 

“Dips lower should find initial support at 1.2468/86 ahead of the short-term uptrend at 1.2330, which is expected to hold the downside.”

“A daily chart close above the 78.6% Fibonacci retracement at 1.2818 is needed to target the 200-week ma, which lies at 1.2924.”