GBP/USD – 1.2970
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 :
Sell at 1.3080, Target: 1.2880, Stop: 1.3140
Position: –
Target: –
Stop: –
New strategy :
Sell at 1.3050, Target: 1.2850, Stop: 1.3110
Position: –
Target: –
Stop:-
Cable’s retreat after early brie rise to 1.3126 has retained our view that a temporary top is possibly formed there and consolidation below this level is seen with mild downside bias for weakness to 1.2950, below there would bring test of 1.2910-15,, however, break there is needed to add credence to this view, bring retracement of recent rise to 1.2870-80 but reckon support at 1.2812 would remain intact, bring rebound 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 upside, whilst recovery to 1.3010-20 cannot be ruled out, price should falter below resistance at 1.3062 and bring another retreat later. A break above this week’s high of 1.3126 would signal recent upmove is still in progress and may extend headway to 1.3150, then towards 1.3190-00 but loss of upward momentum should limit upside to 1.3250, bring another retreat later.
