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. Strength has been contained by the top of a parallel channel thus far. The rally from 1.3500 is taking the structure of a complex (w-x-y) correction. Similar to the EURUSD, I am expecting a reversal.