Expect a break through 2.0963, possibly as early as next week. The rally from 1.9421 to 2.0963 is in 3 waves and is wave A of what is probably a flat. Wave B most likely ended at 2.0012 and wave C is underway now. Wave C would sport equality with A at 2.1554. The 200 day may serve as resistance as well at 2.1286.
5 waves up from 1.9288 confirms the long term bullish bias. The decline from 2.0409 did reach the midpoint of the triangle and the GBPCAD has reached and slightly exceeded the wave 5 high. Unless an expanded flat is underway, the GBPCAD will accelerate higher in wave 3 over the next few weeks. Look for potential support near 2.02. A bullish bias is warranted against 1.9999.
We wrote last update that “the GBPAUD has accelerated and price should continue higher in this 3rd wave (or C wave) from 2.0393. A break above 2.0933 is what we expect at minimum.” The pair has exceeded 2.0933 and the initial objective is 2.1426 (161.8% extension of 2.0295-2.0932/2.0393. A correction to at least 2.0923 is likely near term but price should remain above 2.0633.
Last week, we mentioned that “price should remain above 2.5863 as the rally continues from current levels.” The advance is nearing a the top side of a potential channel. Any near term decline should find support at 2.6653 or channel support. The long term trend is up so look to buy dips near these mentioned levels, against 2.5855.