Unfortunately, we were not patient enough with Cable as it has dropped the day after we stated that “our alternate count is beginning to look better than the favored.
We had favored the idea that the GBPUSD was entering a 3rd wave decline (of C). However, if this count were correct, then the GBPUSD should have accelerated lower by now. Over the last 2 months, the pair has gone sideways and it is more likely that this serves to build a bullish base that will lead to a rally through 2.04. The decline to 1.9599 was likely an X wave.” The decline could still be an X wave but the drop this morning and price remaining below the trendline keeps the trend bearish. We’ll wait for either a better risk short opportunity or for evidence of a larger reversal (alternate) in wave Y.