In spite of the recent recovery, Cable could still slip back and test the 1.2865 level, suggested Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

Key Quotes

“GBP/USD saw a fairly decent recovery yesterday. We remain unable to dismiss a slide to the 1.2865 uptrend. On route lies the December low at 1.2908. A close above 1.3118 (17th January high) is required to alleviate immediate downside pressure and retarget the Fibonacci resistance at 1.3285.”

“Failure at the 4 month uptrend at 1.2865 would put the 200 day moving average at 1.2688 back on the plate.”