Cable recovered nicely in this week, which was expected since Monday when we started to track a larger incomplete wave 3. Looks like this wave 3 will extend even higher, possibly up to 1.6300 as we need five waves within up from 1.5750. Current price action suggests that market is now in late stages of a blue wave (iii) with resistance seen at 1.6220.
USDCAD is in a sharp downtrend, suggests that black wave 3 will be much more extended than firstly thought. However, despite a strong sell-off we think that pull-back in wave iv) will occur, but the question is when. Traders, who want to get involved into this downtrend, must be patient and wait on higher levels before they may join the larger downtrend.