British Pound Decline May Have More To Go

The decline from 2.0131 to 1.9955 is clearly corrective (3 waves) but the rally from 1.9955 is not impulsive either. As such, Cable may be tracing out a larger corrective pattern such as a zigzag pattern or a triangle.

If a zigzag is playing out, look for support near the channel line just above 1.9850. Only a break above 2.0131 suggests additional bullish potential. 2.0068 is short term resistance.