Reversal In The Making

I have been saying all summer that if the $GBPUSD holds above 1.55, then we’d have the beginnings of a reversal in cable. Here we are now with $GBPUSD above 1.60 and a full-blown reversal before us.

 GBPUSD daily chart

After 3 bullish waves (4 on this daily chart), $GBPUSD should be technically exhausted. So this correction back towards 1.60 is healthy and even expected.

GBPUSD 4hr chart

A hold above 1.60 has always been traditionally bullish for cable. Why should 2013 be any different? Despite the pullback off Wednesday’s highs, cable is poised quitely nicely  to make a run for the highs.

GBPUSD weekly chart

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