Cable to go further south, targets 1.19

The recovery - after May's "Hard Brexit"-Speech and the following break down of GBPUSD to 1.19 - went from 1.19 up to 1.279 (the Post Brexit Low) which holds as strong resistance now.

Then on December 15th, we broke the short term upwards trend which generated a lot of bearish momentum. Additionally, We broke 1.23 yesterday which adds to negative momentum. There will be a breather from all the bearish days in the near future but cable will continue its path down to 1.19.

Do not take my wave count seriously...

Kommentera:

Now, I think a further bearish lag down is imminent. We saw a bearish engulfing on the daily and the 10day "weakness" in USD seems over. NEXT week will be a strong Weak for USD, start selling GBPUSD and EIRUSD on Monday