British Pound Nears 1.9700 Objective

[B]Commentary:[/B] We wrote yesterday that "that 1.9700 will be tested before the week is over. 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." The small corrective 4th played out and ended at 1.9958 and price then dropped to 1.9769 (close enough to our objective of 1.9700 to suggest that near term bearish potential is limited). The larger 4th wave that we mentioned yesterday should unfold soon and bring price back to 1.9958 (±) before a drop in wave v of 3 towards 1.9500. The correction will probably be choppy though, possibly a triangle or a flat. On the weekly (or daily), the Pound has dropped below a supporting trendline that dates to October 2006.
[B]Strategy:[/B] Move to flat (previously bearish), looking for a retrace to 1.9958 to get bearish again