British Pound In Limbo

Commentary: We wrote yesterday that “price is expected near term to exceed 2.0564.  Potential resistance is where the rally from 2.0450 would equal the 2.0353-2.0564 rally at 2.0661.”  The high today is at 2.0660 but the pair still looks bullish.  The next level of resistance would be a reaction high from 11/14 at 1.4732.  Still though, we should consider the possibility that the entire decline from 2.1160 is an a-b-c correction that is already complete and that Cable is headed to a new high.

 A larger bullish outcome is possible as long as price is above 2.0450.  The bearish count treats the decline as a series of 1st and 2nd waves.  A larger bearish outcome is possible as long as price is below 2.0844.  At this point, the pair is in limbo.    

Strategy:   Flat