British Pound Technical Outlook

There is no change to the bigger picture pattern in which wave 4 within the 5 wave decline from the 2007 high is nearing completion. Cable has tested a former 4th wave extreme at 1.5730… and exceeded it. I wrote yesterday that “short term structure does not look complete. As such, the GBPUSD likely subdivides higher and makes its way to 1.6000.” The pair touched 1.5000 today and more importantly, the top of a parallel channel. rally from 1.3500 is taking the structure of a complex (w-x-y) correction. Similar to the EURUSD, I am expecting a reversal. Coming under 1.5755 would signal a reversal.