Cable was trading lower early last week, when pair touched channel support and then sharply reversed to the upside.
This usually occurs in a corrective-contra-trend price action. In fact, a decline since mid-June is clearly in three waves and now the bounce from 1.5389 also looks impulsive so looking for higher levels at this stage makes sense.
GBP USD Elliott Wave Analysis – Click image to enlarge
With this being said, further strenght in this market is expected, with a break through falling trend-line that will cause acceleration to 1.5800 in coming days.
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