[B]Commentary:[/B] We wrote yesterday that “with Cable appearing to be subdividing lower, continue to favor the downside and a test of 1.9700, as long as price is below 2.0132.” The GBPUSD has continues to slide and is now below 1.9900.
We maintain that 1.9700 will be tested before the week is over. The wave structure is the same as the EURUSD. That is, wave 3 down has been unfolding since 2.0462. Within wave 3, the decline from 2.0397 is a third wave. Therefore, look for a corrective 4th wave to play out before a test of 1.9700 and completion of wave 3 from 2.0462. A larger 4th wave would then be expected. [B]Strategy:[/B] Remain bearish, against 2.0132, target 1 hit at 2.0000, next target at 1.9700