British Pound futures and ETF FXB Update 2019-10-14

GBP has been on plan rising into wave (iv) targets this week. The futures have a little more room to develop if needed but the FXB chart is pretty close to the limit for a wave (iv). I have also added an alternate on the FXB chart where the drop from the wave [iv] high in 2018 is an ending diagonal where the recent low is wave (i) and is in either (ii) or ‘a of (ii)’ now.

The Week Ahead 2019-10-13

Bonds had a nice drop from the last chance resist at 165^11. Bears need bond prices to drop under 159^18 as confirmation that ‘c of (b)’ down is in development. My preference is for net lower prices into the cycle low in mid February next year.

The Day Ahead: PM Edition 2019-10-10

Bonds broke under the daily moving averages today and thus following the forecast for a ‘c of (b)’ lower. Next minor support is at 161^16 but not a place to expect ‘c’ to end. The earliest place to look for the end of ‘c of (b)’ is 159^17 though lower is typical. Assuming that the cycle in red is active but inverted, we should expect net lower till mid November.