GBP/USD made a nice comeback from the abyss below 1.60, thanks to the weakness of the US dollar, especially after the FOMC.
What’s next for cable? Nomura look at the charts and see how Wave-C is set unfold.
Here is their view, courtesy of eFXnews:
Sterling nailed the wave-(b) target by extending to 1.236 x wave-(a) which is an ideal move, notes Nomura.
“With waves-(a) and (b) of the 3-wave correction complete, our focus now shifts to the final leg higher (wave-(c)) towards 1.65/66,†Nomura projects.
“S/t, the final move up is expected to unfold as a sharp 5-wave rally. Near-term resistance is 1.6288. So fart the initial wave-i rally is complete and this implies that pullbacks can be used to add long exposure for a the larger move higher,†Nomura adds.
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