The rally has posted an exhaustion count on the weekly chart.
Broke the sequence of 6 negative daily performances.
The overnight rally has been sold into and there is scope for further bearish pressure going into this morning.
A break of bespoke support at 2799, and the move lower is already underway.
The bias remains mildly bullish but there is scope...
There is a clear wave count here with bearish divergence and normal wave extensions to back up the argument that a large drop down to at least wave (4) will occur now. Wave 3 was between 1 and 1.618 times the length of wave 1. Thus, wave 3 was the extended wave and so wave 5 is likely to be less than 1 x the length of wave 1. So far, wave 5 is around 0.786 times...
Good morning traders,
Here on the GBPUSD, looks like we could see one more drop until a reversal. The drop will only be short term, falling to the 12725.0 level. My stop is placed at 12935.0
Current position on EUR/CAD +45 pips up.
However we have now had the break of this 5 wave triangular structure to the downside so i am expecting more downside momentum to continue.
Daily support at 1.38800 is our next key level, if we break below that we're heading way down to 1.37600.
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