[B]Commentary:[/B] The idea that Cable is tracing out a larger 4th wave remains possible, which means that this down leg could be just the first leg of a larger correction. The line in the sand for the larger bullish picture is 2.0203. However, given the EXTREME sentiment (speculative positioning extremely long), Cable could very well continue to drop fast. The pair is coming up on potential support from a line drawn off of the 6/14 and 7/6 lows.
A drop below exposes the 61.8% to 50% zone of 2.0056-2.0654 at 2.0284-2.0355. The short term structure is unclear. But, given the high correlation between EURUSD and GBPUSD and given that the EURUSD structure is bearish, a bearish stance on Cable is reasonable. [B]Strategy:[/B] Bullish against 2.0203, targeting 2.1000 (but monitoring closely)