GBP/USD – 1.2943
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 :
Stand aside
Position: –
Target:Â –
Stop:-
The British pound edged higher after brief pullback and gain towards 1.3000 cannot be ruled out, however, reckon resistance at 1.3015 would hold, bring retreat later. Only break of 1.3015 would signal upmove has resumed for retest of 1.3048 resistance break there would confirm and extend headway to 1.3075-80, then 1.3100-10 later.
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 pullback to 1.2900 cannot be ruled out, break of 1.2870-75 is needed to signal top is possibly formed, bring weakness to 1.2850 but break of indicated key support at 1.2830 is needed to revive bearishness and signal the rebound from 1.2769 low has ended, bring further fall to 1.2800 first.
