British Pound Technical Outlook

Concentration is on the daily because near term price action is choppy and unclear. The decline from 2.1160 to 1.9337 was in 5 waves and serves as wave A of the correction. A corrective rally to 2.0396 was wave B and wave C is underway now towards 1.85.

Corrections often reach the 4th wave of one less degree. In this case, that level is 1.8515. Wave C would equal wave A at 1.8572 and the 61.8% of 1.7047-2.1160 is 1.8618. In other words, 1.85/1.86 has a bull’s eye on it. An alternate count counts the decline from 2.0396 as wave X in a larger upward complex correction from 1.9337. Under this scenario, the GBPUSD would exceed 2.0396 before falling hard in the larger C wave towards 1.85. Move risk to 1.9892