GBP/USD – 1.3529
Original strategy :
Sell at 1.3620, Target:1.3420, Stop: 1.3680
Position: –
Target: –
Stop: –
New strategy :
Sell at 1.3620, Target:1.3420, Stop: 1.3680
Position: –
Target: –
Stop:-
Although cable fell briefly below support at 1.3452, lack of follow through selling and current rebound suggest consolidation would be seen and recovery to 1.3595-00 cannot be ruled out, however, price should falter well below last week’s high at 1.3659 and bring another retreat later, below said support at 1.3450 would signal a temporary top is formed, bring retracement of recent rally to 1.3380-85, then 1.3350 but reckon 1.3300-10 would hold from here.
In view of this, we are looking to turn short on further recovery as 1.3615-20 should limit upside. Above said resistance at 1.3658 (this week’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.
