GBP/USD – 1.2887
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
New strategy :
Sell at 1.2920, Target: 1.2770, Stop: 1.2970
Position: –
Target:Â –
Stop:-
Although cable rebounded briefly to 1.2958, renewed selling interest emerged there and sterling has slipped again, suggesting the rebound from 1.2844 has ended, hence consolidation with downside bias is seen for test of 1.2844, however, break of previous support at 1.2831 is needed to signal temporary top has been formed at 1.2991 earlier, bring retracement of recent upmove to 1.2770-75 but previous support at 1.2757 should hold from here.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 upside, expect recovery to be limited to 1.2920-30 and said resistance at 1.2958 should remain intact, bring another decline later. A firm break of 1.2958 would signal the pullback from 1.2991 has ended, bring retest of 1.2991 later, only above there would revive bullishness and extend recent upmove to 1.3040-50 but overbought condition should limit upside to 1.3075-80 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.
