British Pound Decline Looks Corrective

Commentary: Longer term, it is still possible that 2.0654 will be exceeded as the decline from there is in 3 waves. Under the bullish, the rally from 1.9651 is wave 1 and the decline from 2.0366 is wave 2.

Wave 3 then is underway now and if this is the case, then the rally should accelerate. However, given the possible bearish count in the EURUSD, caution is warranted. The longer term bullish case is valid as long as price is above 2.0084. The other possibility is that a larger complex correction is unfolding from the top (2.0654), such as a triangle or flat.

Strategy: Flat