GBP/USD – 1.3240
Original strategy :
Sell at 1.3280, Target:1.3080, Stop: 1.3340
Position: –
Target: –
Stop: –
New strategy :
Sell at 1.3315, Target:1.3115, Stop: 1.3375
Position: –
Target: –
Stop:-
Although cable has eased again after rising to 1.3265, reckon pullback would be limited to 1.3200 and near term upside risk remains for the rebound from 1.3027 (last week’s low) to bring retracement of recent decline, hence gain to resistance at 1.3292 cannot be ruled out, however, reckon upside would be limited to 1.3315-20 and bring retreat later, below support at 1.3175 would signal topic formed, bring weakness to 1.3125-30, break there would suggest the rebound from 1.3027 has ended and bring further fall to 1.3075, then retest of said support at 1.3027, break there would confirm the fall from 1.3658 top has resumed, bring test of psychological support at 1.3000, then towards 1.2970.
In view of this, we are still looking to sell cable on further subsequent recovery as 1.3315-20 should limit upside, bring another decline later. Above previous support at 1.3343 would abort and signal low has been formed instead, bring at least a correction of the fall from 1.3658 top to 1.3390-00 later. 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 could have ended at 1.3658.
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.
