GBP/USD – 1.3547
Original strategy :
Sell at 1.3600, Target:1.3400, Stop: 1.3660
Position: –
Target: –
Stop: –
New strategy :
Sell at 1.3620, Target:1.3420, Stop: 1.3680
Position: –
Target: –
Stop:-
Although cable found support at 1.3452 and has rebounded, if our view that top has possibly been formed at 1.3658 earlier this week is correct, upside would be limited to 1.3615-20 and bring retreat later, below 1.3500 would bring test of said support at 1.3452, break there would add credence to this view, bring weakness to 1.3380-85, however, break there would bring retracement of recent rally to 1.3350, then towards 1.3300-10 which is likely to hold form here.
In view of this, we are looking to turn short on further recovery as 1.3615-20 should limit upside. Above said resistance at 1.3658 (this week’s post-Fed high) would signal recent upmove is still in progress and may extend headway to 1.3700. Our preferred count is that (pls see the attached chart) the wave IV is unfolding as a complex double three (ABC-X-ABC) correction with 2nd wave B ended at 1.2774, hence 2nd wave C is unfolding and may extend further gain to 1.3650, then 1.3700, however, overbought condition should limit upside to 1.3770-75 and reckon 1.3800-10 would hold from here, bring retreat 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.
