We can see that the GBP has gained a lot of strength in the past couple of days, something also backed by positive economic data. From a technical standpoint right now we could be seeing one more wave to the downside should my wave count be correct. Looking at the bigger picture I believe we could be in a FLAT or EXPANDED ABC Correction.
- Potential Entry: 0.8890
- Potential Target: 0.8750 (120 pips)
- Stop loss: 0.8940 (50 pips)
- Risk to reward ratio: 2.4
Trade safe and do your own due diligence before executing a trade.