GBP/USD – 1.3425
Original strategy :
Sell at 1.3535, Target:1.3335, Stop: 1.3595
Position: –
Target: –
Stop: –
New strategy :
Sell at 1.3535, Target:1.3335, Stop: 1.3595
Position: –
Target: –
Stop:-
As cable has recovered after finding support at 1.3364, suggesting minor consolidation above this level would be seen and corrective bounce to 1.3460-65 and then 1.3500 cannot be ruled out, however, reckon 1.3535-40 would limit upside and bring another decline, below said support at 1.3364 would extend the erratic fall from 1.3658 (last week’s high) for retracement of recent rise to 1.3350 and later towards 1.3300-10 which is likely to hold from here.
In view of this, we are looking to turn short on recovery as 1.3540-50 should limit upside. Above resistance at 1.3571 would risk test of 1.3600 but break of latter level is needed to signal pullback from 13658 (last week’s post-Fed high) has ended, bring retest of this level later. break there would signal recent upmove has resumed for headway to 1.3700-10 first. 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.
