We wrote yesterday that “the most probable count in our estimation is that wave C of a flat is underway and will exceed 2.04.
This fits with the larger USD bearish count. In summary, odds are high that the GBPUSD continues higher from current price.” This assertion proved correct as Cable has soared higher today. Corrections are expected along the way and we’ll look to identify the end of those corrections as they unfold. Coming back to 1.9942 (congestion) is possible over the next few days. It is still possible (although we put the probability as low) that a triangle is unfolding and that a D wave will begin soon and end near 1.96. Our strategy is to take some profits now and hold the rest for a rally through 2.04. Move risk to 1.9810.
STRATEGY: Bullish, against 1.9810, target 1 is NOW, target 2 TBD
