Forex Flash: GBP/USD may rebound to 1.5913 before resuming downtrend - Commerzbank

Having eroded the accelerated downtrend and reached the 20 day ma at 1.5811, Commerzbank analysts believe the GBP/USD may extend the rebound from 1.5642 (2009-2013 uptrend) even further: “The Elliott wave count on the daily chart is suggesting that we allow for the possibility of a deeper retracement towards 1.5913 and possibly 1.6000, the 38.2% and 50% retracements of the move seen this year. However we then look for failure and a retest of the trend line”, wrote analyst Karen Jones, favoring a break below here to 1.5271/35 (2012 low) in the longer term.