GBP/USD – 1.3112
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 :
Buy at 1.3070, Target: 1.3250, Stop: 1.3010
Position: –
Target: –
Stop:-
As sterling has eased after faltering below resistance at 1.3159 (last week’s high), suggesting consolidation below this level would be seen and pullback to 1.3070-80 cannot be ruled out, however, reckon support at 1.3050 would hold and bring another rise later, above said resistance at 1.3159 would extend gain to 1.3200, having said that, as this move is still viewed as the final wave v of larger degree wave C, reckon upside would be limited to 1.3240-50 and price should falter below 1.3300-10, then sterling shall retreat sharply from there.
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 1.3070-80 cannot be ruled out, reckon support at 1.3050 would hold and bring another rise. Only below support at 1.2999 would abort and signal top has been formed at 1.3159, bring retracement of recent rise to 1.2980, then 1.2950-55 but previous support at 1.2933 should hold from here.
