GBP/USD - 1.3807.. The pound moved narrowly in Asia n caught a bid at European open, price rose fm 1.3830 to 1.3882 n briefly jumped to 1.3913 after soft US CPI but only to tumble to 1.3804 on cross-selling in sterling.

On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven usd's demand following free fall in global stocks, price rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month 1.4241 peak in late Feb suggests a major low is made. Despite hit- ting a 3-year peak of 1.4250 on Jun 01, selloff to as low as 1.3753 in Jul con- firms long-awaited correction has occurred. Cable's rally to 1.3983 (Jul), then back down to 1.3602 in Aug n subsequent rally to 1.3913 Tue suggests choppy trading abv 1.3573 would continue n may head twd 1.3983, abv, 1.4040/50.

Today, as Tue's 1-month peak at 1.3913 was accompanied with bearish diver gences on hourly indicators, subsequent selloff to 1.3804 signals upmove fm 1.36 02 (Aug) has formed a top n would head to 1.3750 but o/sold readings on hourly oscillators would keep price abv 1.3721 (61.8% r). Abv 1.3856 risks 1.3888/91.

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