British Pound Cable Could Break Out

Commentary: We wrote yesterday that “we favor a drop below 2.0243 to complete a flat correction and then the strong rally. The bullish scenario is best served by this since the rally from 2.0243 takes on a 3 wave corrective form and is most likely a small wave b.”

After dropping below 2.0243, Cable has turned higher and a third wave rally could be underway from 2.0235 after a series of 1 and 2 waves from 2.0043. The bullish objective is above 2.0654. Strategy: Remain bullish, move risk to 2.0235 (from 2.0159), target above 2.0654