GBP/USD – 1.2918
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 1.2845, Target: 1.3025, Stop: 1.2785
Position: –
Target:Â –
Stop: –
New strategy :
Sell at 1.2955, Target: 1.2775, Stop: 1.3015
Position: –
Target:Â –
Stop:-
As cable has retreated after rising to 1.2995 yesterday, suggesting consolidation below this level would be seen with mild downside bias for minor correction to 1.2900 support, break there would bring further fall towards 1.2831 support, however, a break below this level is needed to signal a temporary top has been formed at 1.2995, bring retracement of recent rise to 1.2770-75 but previous support at 1.2757 should hold from here. 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.
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 upside, whilst recovery to 1.2950-55 cannot be ruled out, reckon said resistance at 1.2995 would cap upside and bring another retreat later. Above said resistance at 1.2995 would extend recent upmove to 1.3040-50 but overbought condition should limit upside to 1.3075-80 and price should falter below 1.3100.Â
