GBPUSD--Monday, March 9, 2009
After a little trial and error ( or less politely, flailing around), I have (perhaps) found an impulsive pattern for the current downturn in cable.
Looking at the low on February 18th at 1.4092 and the subsequent high on February 23rd as the alpha-beta base, that would posit a 1.618 delta target at 1.3741. We have had a bounce off that level this morning.
A 4 hour chart:
Seen in closer detail on a 1 hour chart:
This rally off the 1.618 target should probably be seen as an opportunity to add shorts. If the pattern is valid, it would project a new low significantly beneath the January low (1.35).
The delta 2.618 target: 1.3173.
