GBPUSD Before US CPI

All change! The US$ is on the backfoot as the US economy starts to slow, investors withdraw as US stocks fall 8% from highs seen earlier this year as well as becoming more cautious possibly in response to the tariff confusion. So, this could be US$ weakness rather than ￡ strength.

On a technical basis we may now be seeing a move higher which will consist of 3 waves & be labelled red Y. The target for this move is 1.4000.

However, as long as price stays below 1.3434 there is an alternative count that could see ￡$ return to the low 1.20's if not lower, before a move higher is seen. How do we gauge which direction the market can take?

It could be worth monitoring if price stays above support at 1.2605. If this support can stay intact it is possible that price can trade above 1.3434. Which in turn would see the next target become 1.4000. If price trades below 1.2605 & then 1.2430, the bear may be growling for the ￡ again.

Lets see.