British Pound Cautiously Bullish

Commentary: The bullish scenario that we have been focusing on is playng out as Cable pushed above 1.9892 this morning. The push is either a small degree 5th wave or the beginning of a larger 3rd wave. Either way, the outlook is bullish as long price remains above 1.9676.

In the former scenario, a second wave is currently unfolding that could draw price back to the 61.8% of 1.9676-1.9898 at 1.9761. This would allow us to align with the bull trend. Short term support is also at today?s low of 1.9817. The pattern is not as clear as the EURUSD, therefore we think that the EURUSD offers better opportunities. Strategy: Waiting for correction to get bullish against 1.9676 targeting a retest of 2.0131.