GBP/USD door open for a rebound while above 1.2090 – Commerzbank

Cable keeps the door open for t bullish attempt as long as it keeps the trade above recent lows in the 1.2090 area, according to Senior Technical Analyst at Commerzbank Axel Rudolph.

Key Quotes

“Last week GBP/USD has seen a massive spike lower to reach the 1.1938 level. The currency pair briefly dipped to 1.2090 on October 11. It needs to remain above this level for our anticipated small recovery rally to ensue”.

“Since three inside days were made in the past few days a break below 1.2090 would almost certainly mean a continuation of the descent with the 1.2000 mark then being back in the picture”.

“Similarly a break above the 1.2279 October 13 inside day high would point towards higher levels being seen with the 1.2500 mark being a possible target area. We also have a time zone gap back to 1.2639. We would allow for this to be partially filled and note the Elliott wave count is suggesting a rally to 1.2625 in the course of the weeks ahead”.

“We have a resistance line at 1.2947 and will consider that the market remains directly offered below the 1.3056 late September high. Below 1.1938 we would target the 1.0463 1985 low”.