GBP/USD technicals point to a bull run to 1.3390/1.3505 – Commerzbank

Cable’s rebound could extend to the 1.3390/1.3505 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“GBP/USD’s new low has not been confirmed by the daily RSI, and now we have eroded the accelerated downtrend – the argument for a near term correction higher grows. It is interesting to note that the Elliott wave count is pointing to a corrective rebound to the 1.3390/1.3505 area, which is extremely tepid. Below 1.3200 will trigger losses to the 1.3040 October low”.

“The March low lies at 1.3712 and this should offer a tough near term barrier. Rallies are expected to remain capped by the 1.3826 55 day moving average and while below here the market will remain directly offered”.