GBP/USD – 1.3509




Â
Original strategy :
Buy at 1.3380, Target:1.3580, Stop: 1.3320
Position: –
Target:Â –
Stop: – 



New strategy :
Sell at 1.3600, Target:1.3400, Stop: 1.3660
Position: –
Target:Â –
Stop:- 


Although cable resumed recent rise to 1.3658 yesterday, lack of follow through buying and the subsequent retreat suggest top is possibly formed there and consolidation with mild downside bias is seen for weakness to 1.3380-85, however, break there is needed to add credence to this view, bring retracement of recent rally to 1.3350, then towards 1.3300-10 which is likely to hold form here.
In view of this, we are looking to turn short on recovery as 1.3590-00 should limit upside. Above said resistance at 1.3658 (yesterday’s post-Fed high) would signal recent upmove is still in progress and may extend headway to 1.3700. Our preferred count is that (pls see the attached chart) the wave IV is unfolding as a complex double three (ABC-X-ABC) correction with 2nd wave B ended at 1.2774, hence 2nd wave C is unfolding and may extend further gain to 1.3650, then 1.3700, however, overbought condition should limit upside to 1.3770-75 and reckon 1.3800-10 would hold from here, bring retreat 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. 

