GBP/USD still upside corrective – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted Cable remains upside corrective ahead in the week.

Key Quotes

“GBP/USD’s correction higher last week fell short of the 1.3534/36 recent high and the 20 day m.a and looks set to consolidate very near term – it remains upside corrective going into this week”.

“The Elliott wave count is contradictory and at this stage we will attempt to exit our short positions”.

“Correction higher looks set to extend further than we originally thought and we should allow for a rally to 1.3638, the 38.2% retracement and potentially 1.4158, the 61.8% retracement of the recent sell off”.