[B]Commentary:[/B] We wrote yesterday that “the bearish targets are 1.9989 and 1.9697. Look for the decline to accelerate in the next day.” Cable?s decline has accelerated as the pair tested the mentioned 1.9989 (100% extension of 2.0654-2.0181/2.0462) this morning.
This is a critical point as a bottom and reversal is possible at this level (since the A-B-C correction may be complete). However, with no evidence of a bottom in the EURUSD and with Cable also appearing to be subdividing lower, continue to favor the downside and a test of 1.9700, as long as price is below 2.0132. [B]Strategy:[/B] Remain bearish, move risk to 2.0132 (from 2.0397), target 1 hit at 2.0000, next target at 1.9700