British Pound Breaks Wedge

Commentary: We presented an alternate pattern yesterday and wrote that "the wedge shape of the rally from 2.0043 could be an ending diagonal in wave C within an A-B-C from 1.9651.

It is also possible that the diagonal is wave i within a 5 wave bullish cycle from 2.0043. Either way, a pullback to at least 2.0235 is expected." Cable dropped to 2.0233 this morning. The decline can be counted as a 5 wave decline so look for at least one more leg lower. Near term resistance is at 2.0294. See GBPUSD Top for additional analysis. Strategy: Flat