Cable is making a strong rise away from 1.2364 level, clearly in impulsive fashion which can see an extension up to 1.300-1.3040 area for wave C. That said, recently price has been trading in a correction of a higher degree, wave 4 which is as of current rally completed. As such wave 4 was completed at the 1.2830 level and current recovery is final wave 5. That said, the ideal reversal zone for wave 5 may be around the Fibonacci ratio of 100.0, where distance traveled of waves 1 and 5 comes in play. After wave five finds a top, we can a expect a minimum three wave decline towards the region of a former wave 4).

GBPUSD, 4H

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