As we noted on Friday, “We still expect a push through 1.9850 by July but near term, the probability of a corrective decline is high as suggested by the 5 waves up from 1.9469. As such, it is wise to lighten up on longs. We’ll look for support next week beginning at 1.97.” With 1.9700 support broken in the corrective wave the next area of support lies at 1.9571 and the n further at 1,9480. Cable is in danger of carving out a full reversal, but as long as support holds we remain bullish on the pair.
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STRATEGY: Bullish, against 1.9469, target above 1.9850 (BUT lighten up on longs as the probability of a correction is high)