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. Strength has been contained by the top of a parallel channel thus far. The rally from 1.3500 is a complex (w-x-y) correction. Although the rally is extended, there is no sign of a top yet. Coming under 1.5850 would favor additional weakness.