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Cable was trading lower early last week, when pair touched channel support and then sharply reversed to the upside.

This usually occurs in a corrective-contra-trend price action. In fact, a decline since mid-June is clearly in three waves and now the bounce from 1.5389 also looks impulsive so looking for higher levels at this stage makes sense.

GBP USD Elliott Wave Analysis July 17 2012
GBP USD Elliott Wave Analysis – Click image to enlarge

With this being said, further strenght in this market is expected, with a break through falling trend-line that will cause acceleration to 1.5800 in coming days.

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