British Pound Technical Outlook

The structure of the decline from 1.6667 is not clear but I have been expecting a significant reversal as the rally from 1.3500 is viewed as wave 4 within the 5 wave decline from the 2007 high. I am not confident in the bearish position against 1.6667 at this point for a number of reasons. 1. Cable has retraced more than 61.8% of its previous decline and 2. The rally from 1.5800 to 1.6476 is an impulse (5 waves). Remaining above 1.6239 keeps the near term trend pointed higher.