Elliott Wave Analysis: Cable Continuing South After Completed Big Consolidation
Cable has recovered strongly over 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 frames, GBPUSD is trading to the upside in the last 24 hours from 1.4330 so it appears that corrective wave two is still underway. An updated count shows idea of a flat in progress after recent small break beneath red wave 1) which is usually the case in wave B of a flat pattern. That said, price is probably in wave C that can be looking for resistance then around 1.4550-1.4600 area this week. We remain bearish on cable as long as market trades beneath 1.4769 high where pair might accomplished a big contra-trend move visible on the daily chart.
GBPUSD, 4H
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