GBP/USD suffered heavy losses following the Bank of England's decision to leave its policy rate unchanged last week. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes that the cable could plummet to 1.3165 on a break below the 1.3411 September low.
Attention is on the 1.3411 September low
“GBP/USD sold off last week after the BoE decision and starts this week with attention on the 1.3411 recent low.”
“Rallies will find initial resistance at the 55-DMA at 1.3699 and the market will stay directly offered while below there.”
“Below 1.3411 we have little until the 200-week ma at 1.3165.”
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