Cable has turned lower this week, with a very sharp and impulsive price action on intraday chart, which occurred after the inflation data in the UK; where data is finally coming down. We can see a very strong drop, clearly in five waves from an Elliott wave perspective which is important indication for a change in trend, even if just temporary. As such, I think more weakness will come after the rally in three waves which can even be interesting for potential shorts on bounce.
Also, lets not forget on COT data where we can see extremes in positioning of a large speculators, so there can be a new turn in cycle soon, if we respect what happened with the pound when previous reading was that high.
