Commentary: We turned bearish on Wednesday and wrote yesterday that “the decline can be counted as a 5 wave decline so look for at least one more leg lower. Near term resistance is at 2.0294.”
Cable spiked to 2.0345 yesterday afternoon before falling over 200 pips. Price is currently testing the 161.8% extension of 2.0366-2.0233/2.0345 at 2.0131, so a bounce from this level is possible. However, the structure looks bearish as the GBPUSD could be entering a 3rd of a 3rd wave down. If this is the case, then we?ll see much lower levels relatively soon (a break of 2.0043). This very aggressive bearish count is intact as long as price is below 2.0224. Strategy: Flat