[B]Commentary:[/B] We wrote yesterday that “it is still possible that the GBPUSD registers a new low (beneath 1.9651) in order to complete the decline from 2.0462, but it is also possible that a more bullish pattern is underway since the decline from 1.9935 is in 3 waves and the preceding rally from 1.9651 is an impulse (5 waves). The decline from 1.9935 also retraced about 61.8% of the advance from 1.9651. For this reason, a cautious bullish stance is warranted above 1.9743.” Cable has advanced to test the 1.9900 figure this morning and a push through 1.9935 strengthens the bullish case.
Similar to the EURUSD, be careful if the 100% extension of 1.9651-1.9935/1.9743 at 2.0027 is reached as a top and reversal is possible there. A more bullish outcome has price testing the 161.8% at 2.0203. Either way, the near term bias is bullish as long as price is above 1.9743.
[B]Strategy:[/B] Bullish above 1.9743, targets 2.0020 and 2.0200