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Cable bounced at the start of last week to around 1.4470 so it appears that the big corrective wave IV is still unfolding and that the current overlapping price action since March 11th is just a pause within a three wave recovery. We see the pair in wave B-circled making a triangle which in fact can is near completion, as we see the price already in wave E) that can find a support near 78.6 Fibonacci retracement level. A bounce can be seen from here this week, ideally in an impulsive fashion back to 1.4400 that would put more gains in play for wave C of IV. Short-term invalidation level is at 1.4052; as long this level is not breached GBP remains supported.

GBPUSD, 4H

GBPUSD 4

A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. Triangles are overlapping five wave affairs that subdivide into 3-3-3-3-3.

A Triangle Pattern:

triangle 2