Cable is now at pivot resistance (1.6302) that dates back to April of this year. Since finding support within a textbook bull-flag, the rally has been impulsive and is tracing a Wave-5 advance to complete a rally that began at 1.52. A break of 1.63 targets a further push to l/t triangle resistance at 1.65; that would complete a bearish triangle that has been forming over the last 4 years. (p1) S/t, with momentum strong and trends up, pullbacks can be used to enter long for the final push through 1.63. Waves (1) through (3) of this final move are almost complete with upside targets just above at 1.6327. A correction to alleviate overbought conditions will set the stage for an attempt at 1.65. The wave-(4) correction is only valid if it remains above critical support at 1.6131. (p2) Levels: Support – 1.6269, 1.6196, 1.6131 Resistance – 1.6302, 1.6327, 1.6484.
Nomura