Cable found some footing and appears to be seeking stability after the latest inflation report. The CPI on a y/y basis was reported at 3.2%, a decrease from 3.4%. However, Cable is still ticking slightly upward because the forecast was 3.1%, and this miss has impacted sentiment. From an Elliott wave perspective, we see the price emerging from this hourly downtrend channel, suggesting there could be more gains. But for a confirmed change in trend, you’d want to see an impulsive movement, meaning five waves up from the lows and a push up to 1.2540. If Cable does gain strength, we might even turn bullish here, with potential long opportunities once a bottom is established.
Deeper projection, for further weakness would be near 1.235, then 1.23.
