The pattern that we think is unfolidng indicates that the GBPUSD could test 1.9800 as early as this week. Reinforcing this idea is from a Fibonacci level this morning’s low at 1.9552.
The rally from 1.9337 to 1.9957 is a 5 wave advance and is probably wave A within the A-B-C corrective rally. Wave B is underway now and is probably at its midpoint. The drop from 1.9957 is in 5 waves, therefore, expect a rally in wave b of B that challenges at least structural resistance at 1.9787 over the next few days before a decline in wave c of B completes wave B.
Realize that this is a VERY dangerous trade given the BOE rate announcement tommorow.
