Cable is trading in high range, and still looking for a direction after the release of retail sales. What’s next?
The team at Nomura analyze the charts and see a nice pattern emerging:
Here is their view, courtesy of eFXnews:
The simplest way to view GBP/USD range from last week is as an A-B-C correction and that means another sharp rally is forthcoming, says Nomura.
“This sideways range is wave-4 and wave-5 is now underway; the ideal target for wave-5 is 1.5650/5700. S/t, the next key breakout level is 1.5506 and support is the wave-C of 4 low at 1.5415,†Nomura projects.
“The critical support level for this bullish outlook is 1.5383 but we expect a sharp continuation higher today from current levels,†Nomura argues.
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