GBPUSD—correcting

Cable seems to be correcting. With a low today of 1.5755, it's perilously close to last week's low of 1.5749. However that doesn't concern me as much as a break of 1.5730 (below the short-term uptrend line). Next support after that is 1.5670, the Sept. 30th low and then 1.5627. I'd expect that to hold as it's on a former speed line and an uptrend line. A close below that would signal additional lows. Until that point I'm still somewhat biased long for this pair for all the reasons I've been blogging about. I think this may be an EW C wave and if it is .618 of A then the target is 1.6391. The January high was 1.6461 which was near my daily bull flag target. I have point and figure chart targets even higher around the 1.66 area. The pair will run into strong price resistance at from early this year of 1.6244/98.

Cable has negative divergence on the three-hour chart below. I'll probably look for longs as it approaches the small channel long depending on RSI behavior on the shorter term charts.

Here's the three-hour chart:












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