British Pound Further Weakness Ahead

Yesterday we wrote, “That pattern could very well be a B wave within a larger A-B-C decline from 2.0131. If this is the case, then Cable is likely to slip to the 100% extension of 2.0131-1.9841/1.9997 at 1.9709 before mounting any significant rally attempt.”

With the pair printing a very ugly red candle that definitely broke support at 1.9860 level the bias is clearly bearish. Still a bounce here back to that level is quite possible.