GBP/USD – 1.2925
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 :
Sold at 1.2920, stopped at break-even
Position: – Short at 1.2920
Target:Â –
Stop: – 1.2920
New strategy :
Stand aside
Position: –
Target:Â –
Stop:-
The British pound has risen again in part due to cross-buying in sterling and the breach of resistance at 1.2921 signals the rebound from 1.2769 low is still in progress, hence upside risk remains for further gain to 1.2955-60 and then 1.2975-80, however, reckon resistance at 1.3015 would limit upside, bring further choppy trading later. Only a break of said resistance at 1.3015 would signal the correction from 1.3048 top has ended, bring resumption of upmove for retest of this level first.
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, aspect pullback to be limited to 1.2890-95 and 1.2845-50 should hold, bring further consolidation. Only below support at 1.2830 would revive bearishness and signal the rebound from 1.2769 low has ended, bring further fall to 1.2800 first.
