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Cable fell slightly beneath the psychological 1.6000 level yesterday after a recent tricky expanded flat formation was placed in wave B). However, despite weaker price we think that whole decline from above 1.6330 will prove corrective, which means it’s part of a larger uptrend.

GBP USD Elliott Wave Analysis January 17 2013
GBP USD Elliott Wave Analysis – Click image to enlarge

However, on the intra-day basis focus should be for lower levels in the next few sessions with a decline to 1.5950 or even 1.5900 before we may look for a wave C) low and reversal higher.

These levels remain in view while 1.6100 resistance is in place. Any push above that resistance will suggest that pair has bottomed.

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