The break of the up channel in August confirmed a major turn lower as 5-waves up of large cycle degree completed from 1.48 to 1.72. Any rally back to the old pivot breakdown/200dma at 1.6690 can likely mark the top of a modest countertrend correction. (daily) S/t, we count only 3-waves down in Sterling which means that post this upwards correction, another move to new lows can be expected. The correction target is between 1.6630/90 where extensions and the previous consolidation zone align. Once wave-4 completes we’ll shift focus to a continuation of the downtrend. (240m) Conviction: Med/High Levels: Support – 1.6537, 1.6511, 1.6460 Resistance – 1.6634, 1.6657, 1.6690
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