[B]Commentary:[/B] We wrote yesterday that “Cable appears to have some additional downside potential, but not before a push through 1.9935 occurs in order to complete a corrective advance (wave iv) from 1.9651. Following the completion of wave iv, we expect price to register a new low (beneath 1.9651) in what will be wave v of 3. A larger 4th wave correction would be expected following the new low. This view is favored as long as price is below 2.0155.”
It is still possible that the GBPUSD registers a new low (beneath 1.9651) in order to complete the decline from 2.0462, but it is also possible that a more bullish pattern is underway since the decline from 1.9935 is in 3 waves and the preceding rally from 1.9651 is an impulse (5 waves). The decline from 1.9935 also retraced about 61.8% of the advance from 1.9651. For this reason, a cautious bullish stance is warranted above 1.9743.
[B]Strategy:[/B] Bullish above 1.9743, target TBD