Commentary: We wrote yesterday that “the count is not as clear as the EURUSD due to the overlapping waves within the rally from 1.9651.
It is possible that the overlapping waves are a series of 1st and 2nd waves. In this instance, Cable should accelerate higher with 2.0245 remaining intact. The other possibility is that the pair is stuck in a larger correction from 2.0654.” The count is still not clear although the quick decline does favor the larger correction scenario. Under this scenario, 2.0477 should remain intact and price would be on its way to below 1.9651.
Written by Jamie Saettele, Technical Currency Strategist for DailyFX.com