British Pound Technical Outlook

Larger wave B is complete in the form of a double zigzag. Expectations are for price to exceed 1.9957 in the coming weeks in wave C within the A-B-C rally from 1.9337. We wrote yesterday that “the advance from 1.9386 could be a series of 1st and 2nd waves, so an ‘explosion’ higher this week seems possible if not likely.” Cable’s ‘explosion’ appears to be underway. Ideally, price remains above 1.9548 and the GBPUSD takes off in a 3rd wave. Still, 1.9441 is our bullish ‘line in the sand’.

STRATEGY: Bullish, against 1.9441, target above 1.9957