…….Not at these levels!
We believe that the GBPUSD has put in a multi-year bottom! Monthly and weekly long term chart patterns/Elliott Wave counts are bullish. We believe that all the ‘bad’ news has been priced in and digested by the market in our humble opinion and Cable could emerge as a clear outperformer versus the USD for the next couple of years. We are buyers of GBPUSD on price setbacks! In light of our work on the USD Index and our recent articles on the Greenback, we believe that the GBPUSD is primed for a pullback versus the USD, as are the major currency pairs. The weekly and daily charts showcased below are self-explanatory and we believe the daily chart with our preferred wave count justifies our belief that a pullback for Cable is on the cards.
1. GBPUSD – Weekly Chart
2. GBPUSD – Daily Chart with our preferred Elliott Wave Count
3. GBPUSD – 30Yr Average Seasonal Pattern suggests a weak start to the year for Cable