Forex Flash: GBP/USD correction points to the 1.5620 region – Commerzbank

The sterling is intensifying its correction lower at the end of the trading week, threatening to breach the key support at 1.5700 after climbing as high as the proximities of 1.5880 during the European morning.

“The market is upside corrective and this near term rally is indicated to reach 1.5925/80, the Elliott count, before it runs out of steam… Beyond this minor correction we look for a slide back to initially the 61.8% retracement 1.5689 (of the move from June 2012) and then the 2009-2013 support line, this week at 1.5622”, explains Karen Jones, Head of FICC Technical Analysis at Commerzbank.