GBP/USD – 1.2823




Â
Original strategy :
Sell at 1.2910, Target: 1.2710, Stop: 1.2970
Position: –
Target:Â –
Stop: – 



New strategy :
Sell at 1.2910, Target: 1.2710, Stop: 1.2970
Position: –
Target:Â –
Stop:- 


As cable has recovered after falling to 1.2774 yesterday, suggesting minor consolidation above this level would be seen and another corrective bounce to 1.2860-70 cannot be ruled out, however, reckon resistance at 1.2917-18 would limit upside and bring another decline later, below said support at 1.2774 would extend recent selloff from 1.3269 top to 1.2750 but loss of downward momentum should prevent sharp fall below 1.2730-35 and previous support at 1.2706 should remain intact, bring rebound later,
In view of this, would not chase this fall here and would be prudent to sell cable on recovery as said resistance at 1.2917-18 should limit upside, bring another decline. Above 1.2970-80 would defer and risk a stronger rebound to 1.3000 and possibly test of resistance at 1.3032, however, only break of latter level would abort and signal the fall from 1.3269 has ended instead, bring a stronger rebound to 1.3059 and possibly towards 1.3100 but previous support at 1.3112 (now resistance) should remain intact.
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. 

