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Cable fell sharply in the past week when US dollar gained across the board. Price broke through the support channel line connected from 1.5299, September lows which was a key breakout for a change in trend. As such we believe that an impulse structure is unfolding from 1.6300 region with a red wave 3) in process.

gbp usd December 1 Elliot WaveGuest post by  Gregor Horvat

In the past sessions, a sub-wave 3 reached 161.8% Fibonacci extension level of a black wave 1 distance, which is a typical third wave target, so some upward corrective pull-back is definitely expected. We are talking about a black wave 4 which may reach levels even around 1.5700 before downtrend resumes, but definitely must not move above 1.5839 critical region of a black wave 1, otherwise bearish count will become invalid.

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