Commentary: We wrote yesterday that “the drop to 1.9337 might have formed a tradeable bottom. One count in the GBPUSD suggests that a multi-week low is in place as there are 5 waves down from 2.1160. Under this count, the decline from 2.1160 is either wave A or 1 in a 3 or 5 wave bear cycle. Under this count, the pair is expected to rally in either wave B or 2.” One reason why we favor this count is that the line extended from the bottom of wave 1 and 3 defends the bottom of what is now wave 5.
Strategy: Bullish against 1.9337, target TBD
Al Bawaba
