GBP/USD – 1.2927




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New strategy :
Stand aside
Position: –
Target:Â –
Stop:- 


As cable has retreated after surging to 1.2979 yesterday, suggesting consolidation below this level would be seen and pullback to 1.2895-00, then towards support at 1.2873 cannot be ruled out, however, if our view that low has been formed at 1.2774 is correct, downside should be limited to 1.2835-40 and bring another rebound later. Above said resistance at 1.2979 would revive bullishness and extend the corrective rise from 1.2774 low for retracement of recent decline from 1.3269 to 1.3000 and possibly towards resistance at 1.3032.
In view of this, would be prudent to stand aside for mow. Below 1.2835-40 suggest the rebound from 1.2774 has ended instead, risk weakness to 1.2800, then retest of said support at 1.2774 which is likely to hold on first testing.
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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