GBP/USD – 1.2903



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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



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Original strategy :
Sell at 1.3055, Target: 1.2860, Stop: 1.3115
Position: –
Target:Â –
Stop: – 



New strategy :
Sell at 1.2950, Target: 1.2800, Stop: 1.3010
Position: –
Target:Â –
Stop:- 


As cable has fallen again after brief recovery and decline gathered momentum after breaking below previous support at 1.2933, adding credence to our view that the selloff from 1.3269 top is still in progress and bearishness remains for this move to bring correction of early upmove, hence further weakness to 1.2850-60, then test of previous support at 1.2812 would be seen, however, near term oversold condition should prevent sharp fall below 1.2800 and reckon 1.2740-50 would hold on first testing, bring rebound later.
In view of this, would not chase this fall here and would be prudent to sell cable on recovery as 1.2950-55 should limit upside, above 1.2990 would defer and risk a stronger rebound to 1.3032 (Friday’s high), however, break there is needed to signal a temporary low is formed instead, bring a further subsequent gain to 1.3059 and possibly towards 1.3100 but previous support at 1.3112 (now resistance) should limit upside.
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. 

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