Commentary: The GBPUSD decline from 2.0654 is clearly in 3 waves and is therefore corrective.? However, the advance from 1.9879 is far from impulsive at this point as every top overlaps with every low.? Since the rally is not an impulse, and therefore not a 3rd wave is expected to break above 2.0654 , then what is it??
We proposed a double zigzag count last week, which we still see as the most probable count (a double zigzag is a complex correction).? If the rally is corrective, then the everything from 2.0654 is part of a larger correction such as a triangle or a flat.? Under this interpretation of the pattern, price is expected to exceed 2.0494 but then reverse.?
Strategy: Flat