British Pound Ending Diagonal Complete?
Commentary: We are looking for a major reversal in the GBPUSD. The upper resistance line for an ending diagonal from 1.8515 is at 2.0333 today. Cable may push closer to this level but the reward to risk does not justify a bullish position.
The daily shows why we are expecting a change in trend. The rally from 1.7046 is nearly complete (or already is) as indicated by the 5 wave structure. The 5th wave is an ending diagonal. These patterns often lead to a violent reversal and are usually fully retraced. Once we see a clear ‘5 down on the intraday (which would signal that a top is in), we will comment on it here. Strategy: Flat
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