GBP/USD – 1.2997





Recent wave: Wave V of larger degree wave (III) has ended at 1.1986 and major correction has commenced from there for gain to 1.3000 and 1.3140-50


Trend: Near term up






Original strategy :


Sell at 1.3050, Target: 1.2850, Stop: 1.3110



Position: – 

Target:Â –

Stop: –





New strategy :


Sell at 1.3050, Target: 1.2850, Stop: 1.3110

Position: –

Target: –

Stop:-





Although cable has recovered after finding support at 1.29\33 yesterday and consolidation above this level would be seen today, if our view that a temporary top is possibly formed at 1.3126 is correct, upside should be limited to 1.3040-50 and bring another decline later, below said support would add credence to this view, bring retracement of recent upmove to 1.2910-15, break there would provide confirmation, then further fall to 1.2870-80 would follow but reckon support at 1.2812 would remain intact, bring rebound 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. 




On the upside, whilst recovery to 1.3010-20 cannot be ruled out, price should falter below resistance at 1.3062 and bring another retreat later. A break above this week’s high of 1.3126 would signal recent upmove is still in progress and may extend headway to 1.3150, then towards 1.3190-00 but loss of upward momentum should limit upside to 1.3250, bring another retreat later.


