British Pound 2.0270 Potential Reversal Point

[B]Commentary[/B]: The structure of Cable is virtually the same as the EURUSD. That is, in the intermediate term, we expect both pairs to turn lower and head much lower.

However, just as the EURUSD seems poised to test 1.3750, the GBPUSD appears that it will continue towards the 61.8% of 2.0654-1.9651 at 2.0271 before reversing to at least 1.9961. We can not ignore the fact that setbacks since 8/17 have occurred in 3 waves. 3 means indicates countertrend movements, therefore the near term trend is pointed higher. In summary, look for a top and reversal near the 61.8% of 2.0654-1.9651 at 2.0271 with the initial bearish objective at 1.9961.
[B]Strategy[/B]: Remain bullish, move risk to 2.0043, (from 1.9961), target 2.0271 and 2.0439 (move to BE after T1 hit)

[B]Written by Jamie Saettele, Technical Currency Strategist[/B]