GBP/USD – 1.2897
Recent wave: Wave V of larger degree wave (III) has ended at 1.1986 and major correction has commenced from there for gain to 1.3000 and 1.3140-50
Trend: Near term up
Original strategy :
Buy at 1.2710, Target: 1.2910, Stop: 1.2650
Position: –
Target:Â –
Stop: –
New strategy :
Buy at 1.2850, Target: 1.3000, Stop: 1.2790
Position: –
Target:Â –
Stop:-
As cable has risen again and broke above indicated previous resistance at 1.2906, adding credence to our bullish view that recent upmove is still in progress and upside bias remains for further gain to 1.2950, then towards psychological resistance at 1.3000 but near term overbought condition should limit upside and 1.3050 and price should falter below 1.3100. We are keeping our view that the wave c as well as larger degree wave B has ended at 1.2109, hence impulsive wave C has commenced from there with wave i of C ended at 1.2616, follow by a correction to 1.2365 (end of wave ii) and wave iii rally is unfolding, hence further gain to indicated upside targets would be seen.Â
Our preferred count on the daily chart is that cable’s rebound from 1.3500 (wave (A) trough) is unfolding as a wave (B) with A ended at 1.7043, followed by triangle wave B and wave C as well as wave (B) has ended at 1.7192, the subsequent selloff is the larger degree wave (C) which is still unfolding with minor wave (III) of larger degree wave 3 ended at 1.1986, hence wave (IV) correction is in progress which could either be a triangle wave (IV) of a complex formation but upside should be limited to 1.3500 and price should falter well below 1.4000, bring another decline in wave (V) of 3 for weakness to 1.1500, then 1.1200.
On the downside, whilst initial pullback to 1.2845-55 is likely, as long as support at 1.2805 holds, bullishness remains for another upmove. A drop below this level would defer and suggest top is possibly formed but only break of support at 1.2757 would add credence to this view, bring retracement of recent upmove to 1.2700-10 later.Â
