This week, Cable bounced from the exhaustion area commented on May 28. The FOMC meeting decision triggered the main bullish move. On Thursday’s trading session, the Bank of England (BoE) decided to keep unchanged the interest rate at 0.75%.
Our previous vision
In our original post, we commented about the potential ascending channel structure for the GBPUSD pair. Also, we proposed a potential exhaustion zone between 1.26086 and 1.24141. Additionally, we introduced 1.25166 as the critical level to observe due to the confluence between two waves. Remember that a confluence region has a high probability of reaction. Consider that the potential next move could be a reversion or a pause of the main movement.
The GBPUSD pair could make a limited upside move to the area between 1.27479 and 1.2766. After this, the pound could start a three-wave corrective sequence to a range between 1.2665 and 1.2608. From this area, the cable should begin to bounce with the eyes placed between the 1.29 and 1.30 area. To confirm the potential impact area, we have to wait for the Wave 2 completion. The invalidation level is at 1.25060.