[B]Commentary[/B]: We wrote yesterday that “Cable?s rally looks impulsive and the next level of resistance is the 161.8% extension of 1.9621-1.9780/1.9655 at 1.9912.” The pair has traded through this level in what is a small wave iii from 1.9655. Some consolidation in a wave iv is expected before another rally leg.
Similar to the EURUSD, we are abandoning the bearish bias now. Support should be strong near 1.9867. Ultimately, we expect a test of 2.0131 before a larger turn down. Look to align with bulls on a 3 wave correction between 1.9827 and 1.9867. [B]Strategy[/B]: Look to align with bulls on a 3 wave correction between 1.9827 and 1.9867.