GBP/USD - 1.3822.. Trading cable proved to be tricky in Wed's roller- coaster session. Although selling interest at 1.3814 in Asia knocked price to 1.3743 after soft UK inflation data, sterling later rallied to 1.3834 in NY.

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. Although price tumbled to a 9-month trough of 1.3412 in late Sep, subsequent rally to as high as 1.3834y'day suggest low is made, a daily close abv 1.3834 would head twd 1.3930 (61.8% r).

Today, Wed's rebound from 1.3743 to 1.3834 due to renewed usd's weakness on risk sentiment suggests recent rise from 1.3412 would head to 1.3885/95, 'bearish divergences' on hourly indicators should cap price below Sep's 1.3913 peak. A firm break of 1.3773 signals top is made, yields 1.3743, then 1.3710.

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