Commentary: Cable has broken below the confluence of long term channel support and the 200 day SMA. We wrote yesterday that “if price slips below the confluence of the 200 day SMA/channel support then potential support is at the 100% extension of 2.1160-2.0353/2.0831 at 2.0024.” The GBPUSD is very close to that level right now. If an impulsive decline is unfolding from 2.1160, then the decline should accelerate in the next few days in a third of a third wave down. If we see 5 waves down on the daily, then we will get an opportunity sell the wave 2 correction that ensues. Those that wish to begin bearish operations now should look for resistance in the 2.0230 area.
Strategy: Flat