British Pound Tests 2.0400

[B]Commentary:[/B] We wrote Friday that "there is no sign yet of a reversal but the long term structure indicates reversal potential. The near term strucutre certainly allows for a new high (above 2.0365) as the decline from 2.0365 is in a corrective 3 waves. A short term bullish bias is warranted above 2.0261, but strength above 2.0365 will likely be marginal.

Until we see impulsive bearish price action, we will remain on the sidelines." Cable tested the psychological 2.0400 figure this morning before reversing. Coming under 2.0319 warrants a bearish bias (for the reversal). It is also possible that an ending diagonal (shown on the chart today) is unfolding from 2.0261. If this is the case, then one more high (above 2.0366) is in order before the reversal.
[B]Strategy:[/B] Sell break of 2.0319.