The recommendations should be from current teachers although past teachers from the same school can also provide invaluable comments. In addition to the core subjects, i.e.. English and Math, it is also important and sometime requested that teachers for extra curricular, i.e. music, art, sports should also submit their recommendations. If your child has attended any summer program in the U.S., it would also be beneficial to have comments from those teachers especially for English.
If the school rejected or wait-listed your child because of substandard academic qualifications, it doesn't mean you cannot apply again if your child's performance has improved significantly.