GBP/USD – 1.2875
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: 1.2980
Position: –
Target:Â –
Stop:-
The British pound met heavy selling pressure at 1.3015 yesterday and has tumbled, the breach of previous support at 1.2866 signals top has been formed at 1.3048 earlier, hence consolidation with downside bias is seen for further fall to 1.2844 and 1.2831 support, break there would provide confirmation and bring further fall to 1.2800 and later towards support at 1.2757 which is likely to hold on first testing.
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 1.2900 is likely, reckon previous support at 1.2926 would turn into resistance and limit cable’s upside, bring another decline. Above 1.2965-70 would defer and risk a stronger rebound to 1.3000 but said resistance at 1.3015 should remain intact, bring another decline later.
