GBP/USD expected to fill the gap at 1.2639 – Commerzbank

Senior Technical Analyst at Commerzbank Axel Rudolph believes Cable could attempt to fill the gap around 1.2640.

Key Quotes

“Last week GBP/USD has seen a massive spike lower to reach the 1.1938 level… The currency pair should now oscillate between Friday’s London session intraday low at 1.2228 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”.