Pound advances after breakout as traders eye further gains

Gregor Horvat Wavetraders

Cable is reversing higher after it broke above the channel resistance around 1.3400, which suggests that a higher degree correction is underway. This means we are likely in a three leg recovery within blue B which could extend beyond the 1.3600 area, since that's still only the first leg of a pause; an impulse into subwave A. As such, it could still be in wave 4 correction before a continuation higher for wave 5 of (A), unless it's already in wave (B) that can stop on pullbacks at 1.-34-1.3450 support.

Overall, this move higher should develop as temporary, and once completed, the market may again find sellers, for higher drop within corrective sequnce as shown on a daily chart.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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