GBP/USD focus is now on 1.2996 – Commerzbank

Axel Rudolph, Senior Analyst at Commerzbank, noted Cable could shift its attention to 1.2996 as long as 1.3338 caps.

Key Quotes

“GBP/USD probably ended a minor Elliott wave abc correction at last week’s 1.3338 high, made close to the 50% retracement at 1.3343. While this level caps attention should remain on the 1.2996 2016-2017 uptrend line. This is the break down point to the 1.2830 38.2% retracement and the 1.2575 50% retracement. The currency pair has recently failed at the 1.3557 2014-2017 downtrend and is thus viewed negatively”.

“Above 1.3343 (50% retracement) would trigger a deeper recovery to potentially 1.3417/1.3523, the 61.8% and 78.6% Fibonacci retracement levels”.

“A close above the 1.3658 September peak would open the way to the 1.3836 February 2016 low and the 50% retracement at 1.4341”.