A Look at Sterling
Leaving out the Yen: My perception of the Yen is a) it's a bit out on it's own among the commonly traded currencies and b) CB intervention / policy lends a possibly unhelpful distortion. (Leaving out say the Swedish Kroner for the same reason is a good idea. ) Basically you can add it in but it looks significantly different, reflecting the GBPJPY . I prefer to look at the Yen on it's own - just a personal preference.
The point, obviously - an underlying flavor of the currency itself - an index.
Two ways of looking at this likely wave completed, nearly exact equality of wave lengths suggests a near perfect a-b-c.
I am perfectly open to d being wave i of five, and it currently being in wave four, and it retesting and peaking out the top, back in late August … it an odd one, because c of (b) retraces 0.382 of (a) … So this could be a wave four but I don't think so.
Where Sterling is now is complex. It appears likely to be in a B wave – where lows are considered a buying opportunity but fail to deliver hoped for highs.
Having said that, I believe it's just completing a minor wave a, where the c wave drops to 0.618 of wave a, there at the 0.382 level (mauve), where it has local price support at the 10.66 level, an upward channel , from where it may push up to form a wave (b) of larger expanded flat.
This would give the required impulse out of say the GBPUSD , making a C wave to complete the corrective upward.
Other pairs – maybe an extended fifth against the EURO??
GBPJPY , (although not included here) almost certainly forming an inverted expanded flat.
GBPAUD: I think there a massive B wave going on, unsurprisingly - hehe - I'd like the pair to reach 2.1, or 1.9895, prior to reversal
CAUTION: DO NOT TAKE THIS AS INDICATION TO TAKE A POSITION IN OR TRADE A SPECIFIC PAIR. Obviously each currency does it's own thing as well.
Eventually Sterling should drop down to the 0.382,0.5. where it can be a very good buy (Potential Buy Zone). Sterling is currently considered the second most likely currency to raise interest rates after the US Dollar . (Whatever one might believe about that - hehe)
Thanks to safv6 for publishing this excellent chart: ...
... from where this chart originated in concept.