GBP/USD is consolidating - Commerzbank

According to Karen Jones, Analyst at Commerzbank, the current intraday Elliott wave counts for the GBP/USD pair imply that a small techincal rebound might be on the cards.

Key quotes:

"It has recently broken above the 2014-2017 downtrend and this has introduced scope to the 1.3658/71 September high and double Fibonacci retracement. Below 1.3320 should be enough to alleviate immediate upside pressure and allow for weakness back to the 1.3157 2016-2017 uptrend."

"A close below the 1.3157 uptrend will be viewed very negatively. The 1.3157 2014-17 uptrend represents the break down point to 1.2830/1.2774, the 38.2% retracement and August low, and the 1.2575 50% retracement."