I sold the GBP on Friday when it turned lower possibly marking the end of the recent corrective recovery. The market compass prediction has been for lower prices throughout December and January.
The GBPUSD is likely to move lower in 5 waves to 1.1945, the first major hurdle is at 1:22 which is the target for the current trade. The fundamental picture has moved over the weekend with Primeminister May signalling that the UK willleave the single market, that may have a number of companies rushing for the exit and the pound heading for its recent floor. the chart shows the 3 wave corrective recovery, teh red trigger line for the trade and then the trade itself currently in the green. Stop loss is the end of the recovery and the initial target is 1:22, Should the cable move below 1:22 in an impulsive manner my confidence in the move down will increase and the likley target will drop to 1:19
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