GBP/USD staged a decisive recovery at the start of the week. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbamk, allows for the bounce to extend towards the 1.3610/65 region.

Corrective rebound being seen

“GBP/USD has bounced just ahead of the 1.3411 recent low. This is viewed as corrective, however, currently, we will have to allow for a rebound into the 1.3610/65 band (Elliott wave count).”

“They will find initial resistance at the 55-day ma at 1.3697.”

“Below 1.3411 we have little until the 200-week ma at 1.3165.”