Cable recently touched a new low at the 1.23-1-24 area, marking a five-wave decline from the 2024 highs rather than a three-wave move. This suggests the five-wave drop could come to an end at the start of the year, possibly in the 1.23 area, because it can be potentially trading now in 5th wave. Also, as we know, after every five-wave move the market typically sees at least a three-wave recovery, so we can expect some price stabilization, ideally this month. In fact, we already see price recovering back above 1.25 which suggests that bulls can be back, but its important to wait on a broken channel to make sure that fifth wave is really done and new recovery underway.(Click on image to enlarge)
GBPUSD Daily ChartFor a detailed view and more analysis like this, you may want to watch below our latest recording of a live webinar streamed on January 06 2025:
