GBP crosses/Technical Analysis

GBP staying weak in overnight trade

I’ve updated the medium term technicals for both cable and EUR/GBP in the members section. Cable is sitting on its 200-week MA and EUR/GBP is trading near a 50% retracement level at .8415, so I am not overly bearish at current levels. Momentum on the sterling is definitely bearish but selling GBP rallies is my preferred play.

  1. Good morning. Cable is tricky and scared pair. 1.5800 may be a buy level, waiting for up daily candle. From 1.5250, wave structure may be still in bull, now, in wave 4, often complex structure.
    If 1.58 level is bid up, then, next wave 5 will be a strong impulse leg to make you rich if you can ride on cable. Leg 1, 3 were short, then, leg 5 will be longest leg.

  2. Wave counting often performance better in trend state. It is easy to spot wave. Range or early stage of a trend, wave counting is not reliable, sometime, it is terribly bad, just make a scenario. But, when top down, or cut off price into small section of range, only focus on price movement from boundary of a range, then, price often show off 5 wave swing in micro structure of price. But, for range behaviour, price swing up to the middle or to top of the range, is often seen.

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