British Pound Short Term Bullish

Commentary: The structure of Cable is virtually the same as the EURUSD. That is, in the intermediate term, we expect both pairs to turn lower and head much lower. However, just as the EURUSD could make a new high before reversing (1.3750??), the GBPUSD appears that it too will make a new high.

We can not ignore the fact that setbacks since 8/17 have occurred in 3 waves. 3 means indicates countertrend movements, therefore the trend is pointed higher. Look for a top and reversal near the 61.8% of 2.0654-1.9651 at 2.0271. Strategy: Short term trade idea - bullish against 1.9961, target 2.0271 and 2.0439 (move to BE after T1 hit)