British Pound Trading Around Trendline

Commentary: Cable is little changed and our outlook is unchanged. The turn higher from just below 1.9700 left two approximately equal legs from 2.0131 (2.0131-1.9841 = 290; 1.9997-1.9676 = 321). Bulls were thwarted at the line drawn off the 5/1 and 5/9 highs but the 3 wave decline from 2.0131 is the dominant pattern and is bullish.

We mentioned yesterday that some consolidation should take place in a 4th wave, so the next move should be in a small 5th wave above 1.9892. This will complete 5 waves up from 1.9676 and we would look to align with the uptrend on a corrective decline. Strategy: Waiting for the scenario described above to play out for an opportunity to get bullish against