GBP/USD – 1.3177
Original strategy :
Sell at 1.3200, Target:1.3000, Stop: 1.3260
Position: –
Target: –
Stop: –
New strategy :
Sell at 1.3250, Target:1.3050, Stop: 1.3310
Position: –
Target: –
Stop:-
As cable has edged higher again today, suggesting near term upside risk remains for the rebound from 1.3027 (last week’s low) to bring retracement of recent decline, hence gain to 1.3220-25 cannot be ruled out, however, reckon 1.3250-60 would limit upside and price should falter well below resistance at 1.3292, bring another decline later. Below 1.3100-05 would suggest the rebound from 1.3027 has ended and bring weakness to 1.3075, then retest of said support at 1.3027, break there would confirm the fall from 1.3658 top is still in progress, bring test of psychological support at 1.3000, then towards 1.2970 but reckon 1.2950 would hold on first testing due to loss of momentum.
In view of this, we are still looking to sell cable on further subsequent recovery as 1.3250 should limit upside, bring another decline later. Above resistance at 1.3292 would abort and signal low has been formed instead, bring at least a correction of the fall from 1.3658 top to another previous support at 1.3343. 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 could have ended at 1.3658.
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.
