Pound Could Test 1.35 This Week

With the rally from 1.35 to 1.4990 in 3 waves, a flat could be unfolding (flats have subwaves 3-3-5). In flats, most of wave A is retraced. Sometimes, wave A is fully retraced. As such, expect at least a test of 1.35 this week, if not a spike below prior to a higher probability bullish opportunity. There are short term bearish opportunities the rest of the week against 1.4665. Initial resistance is at 1.4140.