GBP/USD a test of 1.2625 is not ruled out – Commerzbank

According to technicals, Cable could attempt a test of 1.2625 in the next weeks, suggested 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 (according to our charting software CQG). The currency pair briefly dipped to 1.2090 on October 11 (according to CQG) but it should continue to oscillate between this level and the 1.2500 mark”.

“We also have a time zone gap back to 1.2639 (this is the gap between where London left the market on Thursday and when it traded the following morning). 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 1.2939 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”.