Cable is turning south for the last few weeks, as price stopped at the trendline connected from 2023 high so we certainly should not be surprised by current retracement. Break below the channel support also confirms a corrective phase for the pound, against the previous five wave rise, especially after latest UK CPI figures and BOE decisions that left interest rates unchanged, but there was a couple of dovish hints. So, cable came lower and now even makes a leading diagonal in wave A of a three wave correction, so correction is still unfolding against the previous impulse. If we are correct, then the pair will go lower and deeper after wave B rally, going into UK elections. Big support is at 1.2500/50.
