GBPUSD: Big Corrective Bounce May Be Over; 1.3300/1.3500 Could Be In The Cards This Year
Cable is in recovery mode for the past three months, but based on structure and personality of a bounce we assume it can be a corrective move. We are looking at black wave IV which is now showing us first signs of a completed recovery after recent turn down from 1.4769. Notice that price is now trading beneath 1.4564 level as well which was a low of 2015 so it appears that it’s acting once again as resistance which is important for bearish look. Also, lets keep in mind that trend since July of 2015 is bearish so continuation lower in days and weeks ahead should not be a surprise. We think that market may reach 1.3300-1.3500 area by the end of the year.
GBPUSD, Daily
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On the lower time frame, GBPUSD has turned sharply lower last week from 1.4769 where we saw signs of a top in place. Reason is a strong, impulsive decline and broken channel line connected from 1.4090 that puts bearish trend in play. So ideally market accomplished a big corrective wave IV that was underway since end of February. This however is still an early call, but we will definitely look for three waves down, down to 1.3433.
GBPUSD, 4H
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