Cable ready for correct deeper going into UK elections

Gregor Horvat Wavetraders

Cable is turning south for the last few weeks, as price stopped at the trendline connected from 2023 high so we certainly should not be surprised by current retracement. Break below the channel support also confirms a corrective phase for the pound, againts the previous five wave rise, especially after latest UK CPI figures and BOE decisions that left interest rates unchanged, but there was a couple of dovish hints. So, cable came lower and now even makes a leading diagonal in wave A of a three wave correction, so correction is still unfolding againts the previous impulse. If we are correct, then the pair will go lower and deeper after wave B rally, going into UK elections. Big support is at 1.2500/50

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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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