GBPUSD has struck high at 1.2575 today before reversing sharply lower. The currency trades below 1.2530 handle as we write and might have carved Wave B, within a potential A-B-C correction. If the above counts are correct, we might witness a sharp reversal towards 1.2080 at least, if a flat is underway. Also, it the above counts hold, GBPUSD might have completed its rally at 1.2650, higher degree Wave (1) (not labelled here). The current drop could be Wave (2), before Wave (3) rally resumes higher towards 1.3500. This is an alternate count, which remains possible and we are changing our bullish stance to neutral for short term. Expect at least a corrective drop lower towards 1.2200/50 handle if not lower.
Strategy:
Neutral for now.
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Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.
Strategy:
Neutral for now.
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.