Elliott Wave Analysis: Cable Looking For A New Bullish Run
GBPUSD fell sharply lower a few weeks back after vote counts for EU membership showed that UK wants to leave the Euro zone. Pair fell to a new low which was technically expected as you know since we counted bounce from 1.3850 as a corrective fourth wave, so the final wave V was in store. As we see now price made a nice little turn from the lows, which could be the beginning of a new bullish sequence at least temporary, meaning that three wave bounce can take price higher.
If price breaks beneath the wave C) low, then wave V could still be unfolding.
On the lower time frames, on cable we see a potential low in place after that strong upward reaction from 1.2865 last week, where market might completed a deep A)-B)-C) retracement. We know that when a correction is finished market tends to turn into a new impulse, so ideally pair is now trading within a new bullish cycle, specifically in black wave 3 or C, if recent pullback to 1.3036 labeled as wave 2/B is already completed. If we are correct then 1.2865 should hold; break beneath that price will invalidate the count.
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