[B]Commentary:[/B] Cable continues to subdivide higher. 1 month trendline resistance is at 2.0491 today. The rally from 2.0261 is the 9th wave in the rally that began at 1.9621. As we have commented on here before, reversals occur following completions of 5 wave structures - or derivations of 5 wave structures such as 9, 13, 17, etc. 9 waves means that one of waves 1, 3 or 5 is extended.
For trading purposes, it does not matter which one is extended but rather that the probability is high that a reversal will occur. That said, Cable can continue to subdivide higher, towards the mentioned resistance line as well as 2.0500. Daily RSI is at 79, which is the highest since December 2006 (GBPUSD reversed then at 1.9847). COT positioning sheds some light on the psychological backdrop British Pound Commercial Interest Points to a Top