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.
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.
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.