British Pound 2.0153/2.0271 Reversal Zone

[B]Commentary:[/B] The bullish bias has proved correct and the first target has been hit (2.0020). We wrote yesterday to “be careful if the 100% extension of 1.9651-1.9935/1.9743 at 2.0027 is reached as a top and reversal is possible there. A more bullish outcome has price testing the 161.8% at 2.0203.” Given the ease with which Cable took out 2.0020, it is likely that we?ll see a test of 2.0203 (161.8% extension).

There are a few different valid wave counts at the current juncture but the one that we favor labels the entire decline from 2.0654 as large wave A. The rally since is large wave B (although the rally from 1.9651 could just be the first leg of wave B). Resistance should be strong between 2.0153 and 2.0271 (50%-61.8% of 2.0654-2.0153). The mentioned 161.8% is also at 2.0203 (middle of the fibo zone) and this is a previous congestion area.
[B]Strategy:[/B] Remain bullish, move risk to 1.9930 (from 1.9743), target 1 hit at 2.0020, target 2 is at 2.0200